BLACK MONEY CAN BE REDUCED TO ZERO BY DEBIT CARD WITHOUT PAPER CURRENCY

BLACK MONEY CAN BE REDUCED TO ZERO BY DEBIT CARD WITHOUT PAPER CURRENCY
Read - Debit Card without Paper Currency concept
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What is the black money?

Black money can be defined as money from tax evasion or illegal activities or black economy. For example, 50 lakh rupees donation for a medical seat, reduced value registration of land and buildings, profits from a business operations without paying taxes, smuggling activities to sell at reduced price for gold or imported articles, doing illegal activities to sell at higher price like arms, guns, drugs, mining, etc without getting licenses from the government, bribes and illegal dealing of business people, top officials, government officers, employees, politicians, goondas, mafias, cinema field people, print and electronic media people, many more persons from all walks of life related to black economy.

Causes of Black Money

1. Complex tax structure for selling/buying of goods, services and articles.

2. Intensity of registration by state and central governments mainly real estate sector

3. Inefficient and less staff Income Tax and Other tax/revenue departments and corrupted departments to monitor the activities

4. Less morale of business people and others to pay taxes to the government

5. Corrupt bureaucrats and politicians and businessmen who are encouraging black money

Consequences of Black Money

1. Decrease in tax revenue to the government, as a result, government will increase taxes on goods and services and finally people will suffer tax burden with high taxes enforced by the government.

2. Decrease in Quality and Quantity of public goods and services, for example – Lux soap will be reduced from 100 grams to 93 grams without changing price, quality of goods like water quality from corporation will be reduced without putting florin and that causes diseases to the people. You can add many examples to this issue.

3. Higher taxes and Inflation – Since people have to pay more money to same goods and services and it leads more inflation. As a result, people will get less quantity and less quality goods and services for the same price which they are paying earlier.

4. Difficulty in monetary and fiscal policy formation – government faces difficulty in the formulation of these policies since they do not know volume of black money generated in the country.

5. Increase in criminal activities – if government is not able to control these criminal activities, there is a big chance of increase in criminal activities and it leads to question mark to the safety of people and country as a whole.

CURRENT MEASURES FOR PREVENTION OF BLACK MONEY

1. Amnesty schemes (VDIS) – people voluntarily disclose their incomes after special schemes announced by the government.

2. Demonetizing higher denomination currency – for example, ban on Rs.1000 note and Rs.500 note

3. Special Bonds like infrastructure bonds

4. Converting Black money into White - Mauritius route is a channel to evade paying taxes in India amounting to thousands of crores of rupees with the help of loopholes in a bilateral agreement on double taxation

AFTER IMPLEMENTATION OF DEBIT CARD WITHOUT PAPER CURRENCY

Black money will be reduced to Zero since there is no paper currency and cash transactions and all transactions are accounted with bank. These accounted transactions are available at any time or later date. There will not be any tax evasion from any businessmen since it is accounted. There is no chance to get illegal money or illegal money from anyone after the implementation of debit card without paper currency.

1. Donation for medical seat is not possible – government may legalize this donations as building donations or other donations by fixing rate for this from the students for real causes which are doing by management of these colleges and universities

2. Bribes are not possible for any person like government employee, politician, businessman, or any other person, as a result, black money will greatly reduced to zero.

3. Government will simplify the rules and regulations for uniform taxation, this will be greatly help to the business people for not avoiding taxes.

4. Morale of businessmen will be increased in many folds since each and everything is accounted with bank, more taxes will be paid to the government. It leads to promote the same business in the form of incentives, cash credits, duty drawbacks, many promotional measures to promote the same business by the government.

5. Efficiency of IT departments will be increased and corruption will not be there in these departments after the implementation of Debit Card without Paper currency. Accounted transactions are available at any time with the bank and departments will become more efficient and monitor all transactions easily.

6. Increased tax revenue and income to the state and central governments will create more jobs. Social evils like dowry, bribes, etc will be removed from the society and it boosts more morale and good social values in the society. As a result, Illegal activities will be decreased to zero and those who are involved in these activities will get jobs and work for their livelihood. This societal move protects the safety of people and country, as a result, law and order will be maintained efficiently.