Thursday 10 November 2016

Income Tax Deptt Keeping Vigil on Cash Txns!

Do you know that IT Department is monitoring Cash Transactions?

With the demonetization of 500 and 1000 rupee notes, the Prime Minister, Narender Modi has given a hard blow to the corrupt and hoarders of black money. But demonetization alone is not the solution to curb corrupt practices and black money as people again find ways and means to evolve escape routes to befool the Income Tax authorities. To get rid of black money and corrupt practices, the government not only needs to be vigilant 24x7x365 but also make provisions for harsh penalities like imprisonment so that no one can think of corrupt practices and everybody is forced to be honest in dealings. While I will be discussing a few suggessions to take steps so that now onwards there is no creation of fresh black money. As of now the IT authorities appear to have taken step to keep vigil on cash txns through income tax website. New Menu with "Accounts with Cash Transaction" has been added in the Income Tax efiling and all your cash Transactions in Accounts with valid PAN Number will be visible in the menu.

Suggessions to Curb Black Money:
  • There is no system that doctors give digitalized receipt for the treatment and prescription given to the patients. Government should make it compulsory to register the patients online through Aadhaar ID and accept payments only through Digital Platforms.
  • Similar guidelines should also apply to Lawyers, Architects, Contractors and there should be complete ban on acceptance of Cash Payments by professionals.
  • Biggest source of black money is real estate and registrars enable the transfer of property at lower price whereas the actual deal is many times the transfer price. This facilitation not only causes loss of stamp duty to the state governments but is the biggest source of corruption as facilitators i.e. registrars, tehsildars and the connencted people get their share from the beneficiaries i.e. sellers and purchasers. Let the Government devise ways and means to plug the loopholes in the system.
  • The law enforcing machineries must set an example for the public in general and they should not find favors to favor the law breakers. In this category all vigiliance authorities like Income Tax, Police, CBI, Licensing Authorities, Jail Authorities, Judiciary must set an example before the public and they must command respect from the public by leading clean and public friendly life.
  • Politicians should be easily approachable by the electorate and they should maintain grievances registers to follow up the grievance redressal mechanism of the concerned department.
  • Harsh law need to be formulated so that anyone is to think twice before resorting to corrupt practices or commiting any economic offense.
  • If economic offences are brought to "Zero Tolrence" level then there will be big fall in other crimes and economic offences lead to money power translating into muscle power and crimes against the society.
  • Government should bring down the rates of taxations so that more and more people opt to pay taxes happily. Government will have to take risk by making a start. 
  • Agriculture is not taxable where as defence forces salay is taxable as a common man. Government must abolish the taxation immunity to the agriculture sector as big bigs park their black money in agricultural sector. Government can, if it wants to, keep the small and marginal farmers out of tax bracket.
  • All those entities, individuals or legal entities, who make cash transactions to befool the revenue authorities, should be heavily taxed in such a way that they are not able to create black money through cash transactions.

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