Demonetisation: Will it lead to a corruption free India?

[vgane]

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[[/HTML]TAX EVASION SUSPECTED IN RS 3-4 LAKH CR DEPOSITS POST NOTE BAN

As it analyses bank deposits post- demonetisation, the government has found that an estimated Rs 3-4 lakh crore of tax-evaded income could have been deposited during 50-day window provided to get rid of junked Rs 500/1000 notes.

A senior official said Income Tax Department has been asked to scrutinise details and send notices to depositors of of Rs 3-4 lakh crore on which tax could have been evaded.

"We now have trunkloads of data, analysis of which shows that more than Rs 2 lakh was deposited in over 60 lakh bank accounts post demonetisation. The total amount deposited in these accounts is more than 7.34 lakh crore," he said.]


At 50% tax & penalty Government will get 1.5 lac crores...This along with the 1 lac crores shortfall in deposit will lead to a windfall of Rs 2.5 lac crores...A neat sum which can be used to kick start growth

 

[krish44]

One piece of info for NRI and others returning to india with old currency.

The customs provide forms for surrender of old notes to RBI only on asking for it.

There is hardly any demand for it as most do not know about it

They also stamp the notes for surrender to RBI . That is to ensure that the same notes they bring into india are surrendered to RBI.

 

[prasad1]

The World Bank today said that the "adverse effects" of demonetisation in India will disappear in the medium term, saying any reform has short-term costs.

"Any reform has short-term costs but ultimately reforms will bring long-term gains. In the case of India, we expect whatever the adverse effects of these changing of notes to basically disappear in the medium term," Ayhan Kose, Director of Development Prospects Group at the World Bank told reporters during a conference call.

In its latest report, the World Bank revised its estimates of India's growth rate in 2016-17 fiscal year from previous projection of 7.6 per cent to seven per cent.
http://timesofindia.indiatimes.com/business/india-business/demonetisation-effects-to-disappear-in-medium-term-wb/articleshow/56473930.cms

 

[prasad1]

Demonetisation of higher currency notes — which constituted 86 per cent of India’s cash in circulation — was intended to provide a “total” solution for the serious malaise of domestic black money and was announced without advance notice for obvious reasons. Regardless of the debate on its timing, the fact is that it was aimed at neutralising unaccounted money and hitting at the roots of corruption. That it caused a serious dent on the terror funding — whether in Kashmir or in the “Red Corridor” — is an important dividend for national security accruing from this drastic step.

Elimination of black money strengthens, directly or indirectly, the cause of national security. Illicit money facilitates entry of dubious elements into the power structure, makes it easier for enemy agents to use the lure of money for their purposes and directly aids the funding of terrorists and drug trade. It was in the 1993 Mumbai train blasts that the collusion of Dawood Ibrahim — the mafia don enjoying a large base in that city — with Pakistan’s ISI had been exposed and since then there has been an increasing use of black money-fake currency mix by Pakistan agencies, in the ongoing “proxy war” against India. Fake currency was smuggled in by the same routes, including India’s soft borders with Nepal and Bangladesh, that were being used by the drug cartels. Black money made hawala transactions easy. It is expected that with effective curbs on unaccounted money, our security agencies will be able to monitor unusual online communications and fund transfers that masked terror activity more effectively.

There is little doubt that demonetisation has deescalated the civic unrest in Kashmir, proving what our intelligence agencies had already reported — that the stone-pelting mobs seeking to destabilise the Valley comprised of elements who had been hired by enemy agents and separatists. This was also the reason why the cycle of incidents of burning of school buildings could not be kept up by these miscreants — illicit money in their hands had shrunk. The recovery of demonetised notes along with new Rs 2,000 notes from two LeT terrorists killed at Bandipora recently did confirm the presence of local supporters of this terror outfit.

The impact of demonetisation on the Naxalites is even more profound and visible. The police has recovered huge amounts of old currency from the forest areas of Bastar district and some other parts of the Maoist belt in Chhattisgarh. Naxalites maintained large cash dumps as they had been extracting money over the years by way of levy from contractors, business enterprises and politicians. Deprived of money after demonetisation, some stray groups of Naxalites have surrendered to the authorities. Furthermore, the Maoists, known for looting the police armoury for collecting arms, could resort to raiding banks for money and that is why the police made strong security arrangements in many vulnerable areas. It is interesting, but not surprising, that terrorists looted a bank in Pulwama in south Kashmir in December for sustaining themselves. Intelligence and paramilitary must bend their energy to mount pressure on both cross-border terrorists as well as the Naxalites so that supply of funds to them through illicit channels, including hawala, was not restored.

At the political level, the decision to demonetise demonstrates a combative boldness of Prime Minister Narendra Modi in dealing with matters he thought were directly linked with national interests. A country that had become used to a certain permissiveness about illicit money and particularly in the conduct of elections considered the use of black money as a fait accompli, could see demonetisation turning out to be a huge cleansing operation. Black money and corruption hurt development by depriving the state of funds that would have gone into government schemes. A clean economy restores faith in hard work, promotes social cohesion and adds to national pride. It helps citizens to act as the eyes and ears of the state and note suspicious transactions and activity for sharing their information with the government — something they would not do in a corruption-ridden dispensation. To an extent, this again strengthens national security since in such an environ the security agencies of the country would have the advantage of a flow of information that helps their mission.

It is known that black money in India was in the hands of a very small minority of the affluent belonging to both the business and political class, but the circle of collaborators behind it included a significant part of the middle class, the bureaucracy and those who had an approach to politicians in power. Over the years, a large section of society had developed a vested interest in corruption and the strong politician-bureaucrat-criminal nexus — first mentioned in the 1993 Vohra Committee report — really made it impossible to define the point of start of any worthwhile policymaking against this malaise.

Corruption is classically defined as the misuse of the authority of the state to line one’s own pockets. The phenomenon of black money essentially involves collusion of the functionaries of the state in the generation of unaccounted wealth through bribes. Money on which tax had not been paid is used in turn to increase the circle of colluders holding positions of authority high or low, with the result that an entire hierarchy would have been sold out to the corrupt way of doing things without anybody feeling the pinch of conscience. In India, corruption had acquired a kind of acceptance and endorsement that made it a way of life. This had created an unseen threat to national security at par with the danger posed by an alien adversary. The siphoning of state funds damages development and economic strength and in today’s world where “national security was inseparable from economic security”, corruption thus weakened the nation itself.

http://www.deccanchronicle.com/opinion/op-ed/110117/note-ban-success-without-victory.html

 

[V.Balasubramani]

Realty Sector Suffered “Notional” Loss Of Rs 22,600 Crore From DeMo: It Was Well Deserved
By R.Jagannathan

The demonetisation (DeMo) of high-value currency notes has impacted several sectors adversely, but one industry whose woes are more self-inflicted than the result of DeMo is real estate, India’s most corruption-infested sector.

According to a report by Knight Frank, a property consultancy, in the fourth quarter of calendar 2016, the realty sector suffered a sharp drop in sales in eight major cities, resulting in a “massive notional revenue loss of more than Rs 226 billion (Rs 22,600 crore)”, not to speak of the – again notional – revenue loss to various state governments on stamp duty collection, which has been “in excess of Rs 12 billion (Rs 1,200 crore)…”. (Read the full Knight Frank report here)

Unlike the other sectors that suffered sales and revenue losses due to DeMo, the losses of the real estate sector are truly well-deserved. If this loss does not prompt them to take corrective action, both on exorbitant pricing and excessive stamp duties, nothing will.

The national level “notional” losses of the realty sector will be higher, for Knight Frank data covers only the top eight cities – Mumbai (Metropolitan Region), Delhi (NCR), Kolkata, Bengaluru, Chennai, Hyderabad, Pune and Ahmedabad.
While one should commiserate with those whose livelihoods depend on the real estate sector, the reality is that this sector cannot ever achieve its true potential without a serious price correction of 30-40 per cent in major metros, and even more

The health of an industry depends on broad-based demand, which, in turn, depends on prices that are aligned to mass affordability. But the rapacious real estate sector, which is where crooked politicians and babus park their ill-gotten wealth, works on the unstated assumption that the existing “notional” profits of benami holders must be protected, and hence land availability – a crucial determinant of house prices – must be artificially constrained to hold prices high. This is ensured by artificially restricting vertical building, illogical zonal laws, delays in building permissions, and levy of high stamp duties which encourage sellers to accept payments in black.

Read more at: http://swarajyamag.com/economy/real...rs-22600-crore-from-demo-it-was-well-deserved

 

[vgane]

India set to be Asia's standout economy as demonetization effect ebbs, HSBC says

Saheli Roy Choudhury | @sahelirc
Thursday, 12 Jan 2017 | 10:16 PM

India is expected to be one of Asia's standout performers this year, as the growth outlook for the broader region looks challenging due to subdued trade, tighter financial conditions and weak capital expenditure, according to a new report from HSBC.
In a comprehensive report on Asia's outlook for the year, HSBC noted India could grow at an annual rate of 7.1 percent for fiscal 2018 and 7.6 percent for fiscal 2019, shrugging off any lasting effects from its program to remove 500 and 1,000 rupee bank notes from the financial system in November, labelled demonetization.
The prediction is higher than Asia's average 2017 growth forecast at 4.9 percent; China and the Philippines are expected to grow at 6.5 percent throughout the year, while Indonesia at 5.1 percent.
For the current fiscal year that ends March 2017, growth is expected at 6.3 percent due to the short-term impacts of India's cash crunch, revised down from HSBC's previous prediction of 7.5 percent.

To be sure, India's fiscal 2018 will run from April 2017 to March 2018, while many of its peers use the calendar year to report annual data.


The positive outlook on South Asia's largest economy comes despite India's decision to wipe out 86 percent of the total value of currency in its cash-intensive economy late last year. HSBC's chief India economist, Pranjul Bhandari, noted in the report that investors were confident about India due to a much stronger macro environment.

"Inflation is in single digits, the twin deficits are under control and foreign exchange reserves are at comfortable levels," she said.

Key reforms, and follow-up actions to them, from the government are also on the cards for India in the calendar year 2017, which could lead to further long-term gains. Following the demonetization program, which was aimed at going after so-called black money or undeclared income, economists expect Narendra Modi's government to go after other avenues of black money including real estate, gold and foreign currencies.
The country is also set to implement reforms to replace its byzantine tax structure as early as April, though some market watchers reckon its eventual roll out could be delayed further.

"India is likely to witness two big 'reforms' over the year - the play-out of the demonetization drive and the implementation of the Goods and Services Tax (GST) bill," said Bhandari. "The hope is that both of these are followed up by necessary actions, which are critical to reaping long-term gains."
Meanwhile, Bhandari expects the early days of the GST implementation to be similarly disruptive like they were during the roll-out of the demonetization program.



HSBC's outlook for broader Asia - including Australia and New Zealand - is grim, influenced by expectations for sluggish export demand, tightening financial conditions and weak capital expenditure.

"It appears unlikely that exports will make a sustained recovery this year, or take over as a growth driver at a time when domestic demand continues to slow," said Frederic Neumann, co-head of Asian economic research at HSBC, in the report. He pointed out declines in domestic demand resulted in intra-Asia trade beginning to sputter, while the demand for Asian exports in the West remained subdued.

The possibility of the U.S., under President-elect Donald Trump, implementing protectionist policies could have an impact on Asian exporters. Trump has previously said he would renegotiate existing free trade agreements, including the NAFTA, and threatened to impose steep tariffs on Chinese imports. Commentators have expressed concerns of possible escalation of a trade war between the U.S. and China, which would have broader impact on the rest of the world.

"Protectionist sentiment is strengthening, not just in the U.S. but elsewhere as well, raising the risk that restrictive measures may be increasingly adopted unilaterally," Neumann said.
Due to the challenging outlook for exports and a slowdown in domestic demand, HSBC expects capital expenditure to remain weak.
There are several factors affecting companies' decisions to invest, including the rise in protectionist rhetoric, tricky political calendars postponing tough domestic reforms and the weakening of Asian currencies against the dollar pushing up funding costs for local firms.
Meanwhile, rising U.S. interest rates have also resulted in capital outflows from Asia, after the Federal Reserve raised interest rates in December and projected as many as three rate hikes for 2017.

"For a region highly reliant on credit growth, the resulting tightening of financial conditions is a challenge...one that may grow over the coming year," Neumann noted.

Elsewhere in China, the world's second largest economy has demonstrated signs of stabilization, supported by recent economic data. Last year, local government in the country announced a series of property market cooling measures in a bid to address concerns of a real estate bubble.

According to reports, several cities tightened rules for home purchases, including an increase in the initial payments new homeowners need to make to book their homes.

HSBC economists Qu Hongbin and Julia Wang said in the report they expect more policies from Beijing in 2017 aimed at containing property prices in major cities. Overall, they expect Chinese policy to remain expansionary.

http://www.cnbc.com/2017/01/12/indi...7-percent-growth-in-fiscal-2018-and-2019.html

 

[prasad1]

Two months into demonetisation is an opportune moment to assess what we’ve achieved. I plan to do so in terms of its main aim to eliminate black money which, undoubtedly, has attracted resounding support. The others simply do not justify extinguishing 86% of all currency. Actually, nor does an attack on black wealth held in cash but since the cause is so popular I propose to overlook the fact a virtual nuclear strike was deployed to tackle what seems like a mosquito.



On November 8 currency amounting to Rs 15.4 lakh-crore was demonetised. We now have three separate reports claiming that possibly up to 97% of that amount has been banked by December 30. If this is true, it can only mean two things: Either nearly all the black money is back in the system or the Reserve Bank of India grossly underestimated the currency in circulation.
Let’s go with the first interpretation. The second, I hope, is unfounded. Even if all the money is securely credited in banks it doesn’t mean it’s been laundered. However, this is where the government’s problem starts and it’s a huge challenge it faces.
Can the authorities detect which deposits are legitimate and, therefore, money on which tax has been paid and which is black? The Union finance minister has asserted this can and will be done but that depends on how easy and feasible this task is.

On November 8 currency amounting to Rs 15.4 lakh-crore was demonetised. We now have three separate reports claiming that possibly up to 97% of that amount has been banked by December 30. If this is true, it can only mean two things: Either nearly all the black money is back in the system or the Reserve Bank of India grossly underestimated the currency in circulation.
Let’s go with the first interpretation. The second, I hope, is unfounded. Even if all the money is securely credited in banks it doesn’t mean it’s been laundered. However, this is where the government’s problem starts and it’s a huge challenge it faces.
Can the authorities detect which deposits are legitimate and, therefore, money on which tax has been paid and which is black? The Union finance minister has asserted this can and will be done but that depends on how easy and feasible this task is.

Sudhir Chandra, a former chairperson of the Central Board of Direct Taxes, has told The Hindu (December 19) that if even 1% of the country’s 450 million accounts are scrutinised it means investigating 4.5 million in one year. Given that the CBDT scrutinises 300,000 annually this is a 15-fold jump. Do we have the trained manpower for this 1,400% increase?
A report in this paper on January 6 suggests how this could be made easier. Allegedly Rs 7 lakh-crore has been deposited in around 6 million accounts, which have received deposits of Rs 2 lakh and more. So if this is the broad number that has to be scrutinised the challenge is less daunting. Of course, you can still question whether it’s doable and, indeed, many will.

Now, let’s assume the government does detect most or all of the black money deposited in various accounts. On that basis, Surjit Bhalla (Indian Express, December 6) has calculated it will receive additional revenue in the first year of Rs 2.5 lakh-crore with a further Rs 1.5 lakh-crore every year in perpetuity. If he’s right, it’s a significant gain and demonetisation will be deemed successful.
But something else is also possible. The process of scrutinising so many accounts could unleash another inspector-raid raj. That means harassment, intrusion and vengeful scrutiny. It also opens the door to extortion, corruption and bribery. And at the end of it all the gain may be a lot less than Bhalla’s prediction.
Finally, even if there is a revenue gain — which would suggest the old stock of black money has been, partly or substantially, eliminated — the curse of black money is unlikely to disappear. Why? Because the well-known and widely recognised incentives for creating black money remain firmly intact. As yet the government has not addressed this more important issue. As long as it doesn’t, black money will continue to be generated and bedevil our economy.

http://www.hindustantimes.com/columns/demonetisation-a-virtual-nuclear-strike-to-tackle-a-mosquito/story-VNEdOBpom9SDqf3aXDCEOO.html

 

[vgane]

A good analysis
[h=1]Going cashless: is India ready for digital?[/h]
Written by
Bhaskar Chakravorti Senior Associate Dean, International Business & Finance at The Fletcher School, Tufts University


Published
Tuesday 6 December 2016

Image: Statista 2016
The cost of cash to the government in terms of foregone tax revenues is highest in developing countries, with their shadow economies as large as 30-44 per cent of GDP. While India was not among the worst offenders, its costs to the government are high; India’s tax gap has been estimated at two-thirds of overall taxes owed.

So, Modi is onto something; is it time to follow his nudge and go cashless?

Despite the high costs of cash, telling people to go cashless is putting the cart before the proverbial horse. The horse in this case is the digital infrastructure and establishing a threshold of trust in the system. Money requires two parties across a transaction to believe in it. If there is a shadow of doubt that one party is not ready to go digital, the other will only deal in cash.

India’s digital state, unfortunately, does not engender the trust needed for cashlessness to take hold in a meaningful way. Despite a billion mobile phone subscriptions, just about 30 per cent of Indian subscribers use smartphones. A little over a third of the population has internet access. India lacks the infrastructure to reliably expand access. Connections are patchy and there is great disparity in connectivity: Seventy per cent of those with mobile internet access are in cities; only 17 per cent of Indian women use the internet, according to the Pew Research Center. With women responsible for much of household purchases, this does not provide a strong foundation for the spread of digital payments.

Cold hard cash, the kind that has not been demonetised, is acceptable everywhere. We learnt in our study that India stood out in its cash intensity even among developing countries. Consider: The value of notes and coins in circulation as a percentage of GDP in India was 12.04 per cent, compared to 3.93 per cent in Brazil, 5.32 per cent in Mexico, and 3.72 per cent in South Africa. The ratio of money held in bills and coins to the amount held in demand deposit and savings accounts in India was 51 per cent, as compared to Egypt (29.3 per cent), South Africa (8.9 per cent), and Mexico (8.7 per cent).

Our consumer research partner, ICE 360° found that most consumers see three main benefits of cash: Self-control, speed and guarantee of exact payment. Of course, cash has the advantages of being untraceable and universally accepted (except in some circumstances). For many users, cash gives a sense of security and for others it conveys a sense of independence from government oversight. On the flipside, digital alternatives are not entirely fool-proof as yet. It will take a lot to disentangle the “cash equilibrium” and re-build a new cashless equilibrium.

Should Modi give up on cashlessness?

According to Google India and The Boston Consulting Group, by 2020, digital transactions will happen at 10 times the current level. Demonetisation may serve as the catalyst. But cash will stubbornly resist wholesale digital disruption. We should plan for a slow erosion of cash addiction at best.

At the same time, let’s not demonise the demonetiser. Modi’s war on cash in a high cost environment follows international precedent. Singapore, for example, withdrew its largest currency two years ago. The European Central Bank recently eliminated the 500-euro bank note. South Korea plans to eliminate paper money by 2020. The key is that each of these countries had a digital strategy in place.

The demonetiser’s dilemma is a real one. Smoking out the underground economy — at least the parts not in gold or in offshore accounts — is commendable. Yet, a switch to digital in a digitally under-evolved country such as India is anything but digital — you cannot go directly from zero to one. It is bound to be a journey of many small increments. This journey should have been anticipated. The pain to the common man should have been better managed. Digital and physical infrastructure and logistics should have been in place in advance of the November surprise.

https://www.weforum.org/agenda/2016...al&utm_source=twitter.com&utm_campaign=buffer

 

[biswa]

It is not about attacking black money. It is about attacking the mind set of corruption. Cut off the air supply and the snake dies.

 

[biswa]

Demonetisation affects actress rate cards

https://in.style.yahoo.com/rate-card-actresses-events-weddings-165106655.html

Looks like we can pay 30% less to get these folks to show up at events.

Overall a good thing, no? Down with inflation and black money.

 

[Iyyarooraan]

Demonetisation and the attendant steps are all eyewash. Corruption is routed? Not even touched the fringe of it. In fact it has been well protected. Demonetisation has gone and remonetisation is fast catching up. People were lead to believe that entire black money is with Gandhis and a change of signature on the notes will bring out them. Black money will come out only when a middle class (real, not pseduo) insane person becomes the PM.

 

[tbs]

Demonetisation and the attendant steps are all eyewash. Corruption is routed? Not even touched the fringe of it. In fact it has been well protected. Demonetisation has gone and remonetisation is fast catching up. People were lead to believe that entire black money is with Gandhis and a change of signature on the notes will bring out them. Black money will come out only when a middle class (real, not pseduo) insane person becomes the PM.

hi

i agreed....election without money/muscle power....all political parties need money for election for campaign.....candidates

need money to contest.....so where money comes from?.....all are black money....first bring black money from foriegn banks...

then talk about local.....nothing is going to happen....just another five yrs....just talking only...like rama temple in ayodya....

when election is is over ramar gone...temple gone....again election comes....ramar comes..temple comes...all these are

JUST EYE WASH....

 

[vgane]

Long term benefits will be huge says the Economic survey released by Chief Economic Adviser!!

http://timesofindia.indiatimes.com/...inty-economic-survey/articleshow/56902341.cms

Defending the long-term virtues of demonetisation, the Survey said it could be interpreted as a demonstration of the state's resolve to crack down on black money, showing that tax evasion would no longer be tolerated. "Since this action has commanded support amongst the population, demonetisation shows that black money will no longer be tolerated by the wider public, either," it added.

It said the combined effects of the financial penalty cash hoarders have had to pay - either by declaring incomes they had concealed so far or by having to shell out a "conversion" cost for turning black money white through intermediaries - and of "social condemnation" could have a powerful and long-lasting effect on corruption and tax compliance.

The tax-GDP ratio, as well as the size of the formal economy, could be permanently higher, the Survey said, adding that if it was successful it would in the long run reduce the cash-GDP and cash-deposits ratios, thereby increasing financial savings and boosting long-term growth.

 

[Brahmanyan]

Corruption and Black money are two sides of the same coin. Unless corruption is eliminated Black money cannot be wiped out. Corruption grows because of delay in enforcing stringent punishment.
Corrupt money hidden from taxation is "black money". Power without responsibility generates corruption. This we can see in our day to day inter action with Government servants, the police men in the street to highest bureaucracy. Politicians are the worst lot who encourage corruption.
Demonitisation is a simple act to wipe out part of this ill gotten wealth. This may not wipe out corruption or black money fully. But help to bring back atleast some part to the exchequer.
Unless the guilty has the fear of severe and quick punishment, these scourge will not be eliminated.
Brahmanyan,
Bangalore.

 

[prasad1]

Economic theory and comparative historical experience point to three reasons that might provide legitimate justification for demonetisation. The first is hyper-inflation. In the second half of the 20th century, some Latin American and African countries experienced exorbitantly high inflation rates. If the inflation rate is, let us say, 15,000 per cent, the value of the currency changes virtually every day, if not every hour; people don’t wish to hold on to domestic notes; and the monetary function of the currency begins to collapse. Demonetisation, under such circumstances, is a way out of the economic crisis. Second, if a substantial part of the currency is counterfeit, it makes sense to demonetise. It restores integrity to the monetary system. Third, rarely used in routine transactions of citizenry, high-value notes primarily help the operations of smugglers and criminals. As an attack on organised crime, such high-denomination notes can be decommissioned without hurting law-abiding citizens.
None of these conditions obtained in India on November 8. India’s inflation rate is low; the estimated size of counterfeit currency is small; and the crime-fighting purpose of large-value notes was undermined by the issuance of new Rs 2,000 notes. Moreover, if only an estimated 6-8 per cent of the black economy was in cash, it is unclear how an overnight decommissioning of high-value notes meaningfully attacked the problem of corruption.
--------------------------------------------------

Modi needs a new grand narrative to re-energise his political prospects. Swachch Bharat (clean up India) is not working; achche din (good days) haven’t yet arrived; digital India and smart cities can’t win elections. Attacking black money, a promise made in the 2014 campaign, could in principle provide a new narrative to fire up upcoming campaigns.

http://indianexpress.com/article/opinion/columns/demonetisation-2-0-4501327/

 

[vgane]

Very good write up by Kshitj Mohan Singh!!

What has Narendra Modi government done to fight corruption ? A detailed, factual analysis - A TIMELINE : ✔ 27 MAY 2014 : First cabinet decision - Formation of SIT to fight black money & corruption (which had been delayed by Congress since 4 years despite Supreme Court's orders)
-------------------------
✔ 14 FEB 2015 : Online auction of coal blocks started by the government after SC cancels all the coal block allocations made by UPA. While the UPA did a scam of Rs 1,86,000 crore in coal block allocation, online auction has yielded more than Rs 5,00,000 crore and the allocation is not yet complete.
-------------------------
✔ 11 MAY 2016 : Mauritius route of black money laundering put to an end. The Mauritius route accounted for 35% of overall black money investment in India. The bilateral treaty signed between India and Mauritius ended this practice.
-------------------------
✔ 5 SEP 2016 : PM Modi personally raises the issue of ending safe tax havens in Europe and other countries in the most important G20 meeting. All the major countries of G20 agreed to wage a war on money laundering, black money and terror funding on the call of PM Modi.
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✔ 1 NOV 2016 : BENAAMI (Transactions) Act amended and notified after 18 years. The previous governments had NOT notified the benaami act, and hence was not under effect (The reasons of not being implemented can well be speculated !)
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✔ 8 NOV 2016 : Currency notes of Rs 500 and Rs 1000 banned. A historical move which broke the backbone of counterfeit currency, terror funding, naxalism, human trafficking and black money used to fund these.
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✔ 22 NOV 2016 : Switzerland signs the treaty to share all real time financial transaction details with India. This means from September 2019, NO ONE can store any illegal money in Swiss banks, as Switzerland will provide real time information of everyone depositing any amount.
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✔ 2 DEC 2016 : Rs 65,000 crore of unaccounted money by 64,200 people declared under the Voluntary Income Disclosure, from which government of India earned Rs 29,000 crore in form of taxes.
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✔ 30 DEC 2016 : Singapore route of black money routing blocked, as India and Singapore sign the double taxation treaty....
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✔ 30 JAN 2017 : 18 Lakh people who have made deposits of "unaccounted sum" post demonetization identified. Income Tax department sends notice to them, asking them to explain the unaccounted deposits, failing which action will be taken.
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✔ 1 FEB 2017 : Political funding to the parties by cash decreased from Rs 20,000 to Rs 2,000.
-------------------------
So,
1. Rerouting of black money via Mauritius, Cyprus and Sngapore channel - Blocked
2. Real time transaction data with Switzerland and other European countries - Done
3. Benaami Transaction law - Started
4. Political funding clean-up - Started
Open your eyes. See the large picture guys !! Ask yourself when was the last time in the history of India (post 1947) any govt took such key decisions to fight corruption. If you still doubt his intentions, just introspect !! You will never ever get a Prime Minister like him.

Source: Facebook

 

[prasad1]

Criticising India's decision to scrap high value currency notes, noted American economist Steve H Hanke has said demonetisation is for 'losers' and even Prime Minister Narendra Modi does not know where the country is heading now. "#Demonetisation is for losers and has been bungled from the start.
No one, not even Modi, knows where India is heading," Hanke, an American applied economist at the Johns Hopkins University in Baltimore, Maryland, said in a tweet.
A Senior Fellow and Director of the Troubled Currencies Project at the Cato Institute in Washington, Hanke had earlier said that "India simply does not have the infrastructure to adapt to Modi’s demonetisation...he should have known." Prime Minister Narendra Modi on November 8 had announced demonetisation of Rs 1,000 and Rs 500 notes in a major assault on black money, fake currency and corruption.
The Economic Survey for 2016-17 had said, "demonetisation will have significant implications for GDP, reducing 2016-17 growth by 0.25 to 0.50 percentage points compared to the baseline of 7 per cent."

http://www.deccanchronicle.com/busi...monetisation-is-for-losers-steve-h-hanke.html

 

[prasad1]

 

[prasad1]

Attacking government over demonetisation, Congress leader Shashi Tharoor on Tuesday said that their has been no positive impact on the economy due to note ban. Speaking in Lok Sabha after prime minister Narendra Modi’s fiery speech, earlier in the day in the house, Tharoor said even the RBI has stated that the demonetisation didn’t bring the change as promised by the government.
Questioning the government’s move to replace Rs 1000 and Rs 500 notes with new ones, Tharoor said, it has only added to corruption. He said that the government is presenting a wrong pictures of the economy to the people as the RBI itself has stated that no positive impact has taken place after demonetisation.


He also accused the government of shifting goal post by first talking about ending corruption and flushing out black money by demonetisation and then talking about cashless economy and digitization.

Reacting to Modi’s speech, Tharoor said that just by giving a good speech, good days do not come as for that there is a need to do some work. “By giving a accha bhashan (good speech), acche din (good days) does not come. To bring good days, there is a need for work as well. We have just heard his speech.

http://indianexpress.com/article/india/shashi-tharoor-in-lok-sabha-demonetisation-note-ban-narendra-modi-rbi/

 

[prasad1]

[FONT=&quot]What intrigued me most about the Prime Minister’s raincoat speech in the Rajya Sabha last week was its self-congratulatory tone. He spoke in detail about his dramatic withdrawal of more than 85 per cent of our currency, and patted himself on the back for taking an economic step so spectacular that world-famous economists were now analysing it. Nobody had ever dared do such a thing before, he declared proudly, adding that his dramatic move had immense popular support. In a country where a small incident could cause a big riot, he explained, there had been no public expression of rage. In exactly a month from now, we will know how much popular support there really is. Elections in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur have become a virtual referendum on Narendra Modi’s grand gesture.[/FONT]
[FONT=&quot]What I would like to humbly submit is that on my travels lately I have met fewer people who support what happened than I did in the initial stages of the currency withdrawal. Earlier there was general support from our poorest citizens for two reasons. They liked to see rich people queue with them outside banks and they hoped that at least some of the ‘black’ money would end up soon in their own languishing Jan Dhan accounts. The queues have now almost disappeared and accounts remain empty, so support is beginning to wane. While travelling through Lucknow and rural Uttar Pradesh I met parents who suffered terribly from not having money to pay for medical emergencies, farmers who had made distress sales of their produce and small businessmen who had lost everything. But that is not the point of this piece. What is done is done.

The fact that demonetisation was handled so inefficiently should tell the Prime Minister that administrative reforms are almost more important now than economic reforms. These must begin by cutting red tape and regulations that are uniquely Indian and that have mostly served to create a vast infrastructure for corruption. As someone who wanders about the corridors of Delhi’s mighty bhawans, I can report that the mindset of the people who inhabit these edifices of government has not changed.

Magic tricks, like making nearly all our currency vanish at the stroke of midnight on November 8, 2016, have shock value and garner ephemeral moments of public support. But, magic tricks do not fall in the category of real reform. They can also have un-magical consequences like unleashing a new era of tax terrorism. It is time for the Prime Minister to move beyond his obsession with ‘black money’.

http://indianexpress.com/article/opinion/columns/fifth-column-beyond-black-money-tavleen-singh-demonetisation-narendra-modi-manmohan-singh-economy-reforms-fake-currency-4519900/[/FONT]

 

[Rudhran]

[h=1]Indirect tax revenue grows 24% in Apr-Jan; direct tax up 10.79%[/h][h=1][/h]
New Delhi: Government's revenue collection from indirect tax grew by an impressive 23.9 percent during the April-January period, while that from direct tax rose by 10.79 percent.

Total direct and indirect tax collections at the end of January stood at Rs 12.85 lakh crore, 76 percent of the Rs 16.99 lakh crore target, as per revised estimate for 2016-17.

Belying fears of slowdown due to demonetisation, indirect tax collection grew at a decent 16.9 percent in January buoyed mainly by excise, reflecting an uptick in
manufacturing.

At the end of January, the total direct tax collection stood at Rs 5.82 lakh crore and indirect tax-mop up was Rs 7.03 lakh crore led by robust collections in personal income tax and excise duty, respectively.

To read more click here

 

[prasad1]

http://uswww.rediff.com/news/column/for-a-democracy-modis-words-are-ominous/20170206.htm

 

[Rudhran]

[h=1][FONT=&quot]Demonetisationhas positive impact, says Jaitley[/FONT][/h][FONT=&quot] [/FONT]
[FONT=&quot]Vadodara, Feb 12 (PTI) UnionFinance Minister Arun Jaitley todaysaid the purpose of demonetisation is served as it had led to "larger andcleaner GDP".[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]"Demonetisation was abold and decisive strike in a series of measures to arrive at a bigger, cleanerand real GDP," Jaitley told PTI at Karnali village, around 72 km fromhere.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The finance minister hasadopted Karnali and Chandod villages in Vadodara district.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Toread more click here[/FONT]

 

[Venkatsubramanyan]

Demonetisation will lead india to corruption free india ...not Immediatelty ..it is Just a first step towards that ,lot more to happen down the line ......we need to wit and watch ....for few more days ...

 

[vgane]

Let the thieves be caught and punished by imposing severe penalty!!

[h=1]I-T scanner on suspicious deposits: 9 lakh accounts put under 'doubtful' category[/h]PTI | Updated: Feb 16, 2017, 07.27 PM IST



[h=4]Highlights[/h]

1. Under 'Operation Clean Money', the I-T department had sent SMS and e-mails to 18 lakh people
2. Sources said as many as 9 lakh accounts of the 18 lakh people who have got SMS are considered "doubtful"

NEW DELHI: Nearly half of the 18 lakh people under the I-T scanner for suspicious bank deposits post demonetisation + have been put in the 'doubtful' category, but action against them will follow only after the new tax amnesty scheme ends on March 31.

Under ' Operation Clean Money+ ', the I-T department had sent SMS and e-mails to 18 lakh people, who according to its data analysis had made suspicious deposits of over Rs 5 lakh during the 50-day window provided to get rid of old 500 and 1,000 rupee notes following the demonetisation decision announced on November 8. They were asked to clarify on the deposits and their source by February 15.

Sources in the government said those who did not reply must have "good legal explanation" for their cash deposits and may have chosen to show them in tax returns.

But a mere showing the same in income tax returns is not sufficient as any abnormal rise in income for 2016-17 over previous years will be considered as unaccounted wealth or black money and treated as per law.

"However, since the SMS and e-mail correspondence do not have any legal backing, the department will have to send formal notices and then wait till March 31 for the end of (tax amnesty scheme) PMGKY and then take action against doubtful cases," a source said.

Since Pradhan Mantri Garib Kalyan Yojana (PMGKY) runs till March 31, action against any depositor can be taken only after the scheme closes as the depositor may choose to disclose the wealth and pay taxes.

Under PMGKY, those with unaccounted cash have been offered a chance to come clean by paying 50 per cent of it as tax, penalty and surcharge while parking an additional 25 per cent in a non-interest bearing deposit for four years.

Sources said as many as 9 lakh accounts of the 18 lakh people who have got SMS are considered "doubtful".
As many as 5.27 lakh assessees, out of 18 lakh who were sent SMS and e-mails, had submitted their response till February 12.

As many as 99.5 per cent of the 5.27 lakh assessees have confirmed the amount which they have deposited as cash during the 50-day demonetisation ended December 30. These deposits were made in 7.41 lakh bank accounts.




The source further said strict enforcement action can only be taken if an assessee does not reply to notices or deliberately try to concoct disclosures in ITR.

The tax department has also identified around 4.84 lakh taxpayers not yet registered with the e-filing portal and has sent SMS to them to register.

http://timesofindia.indiatimes.com/...er-doubtful-category/articleshow/57187197.cms