In respect of curbing the Black Money , following report appeared in Hindustan Times ( July 15, 2016 ) :
SIT on black money has recommended :
* Banning of Cash transactions of over Rs 3 lakh
* Individuals restricted from holding more than Rs 15 lakh in cash
* Enactment of an Act to declare such transactions illegal / punishable under law
Revenue Secretary , Shri Hasmukh Adhia added :
* Legislative changes required for both suggestions to be implemented
* Limiting cash transactions would strengthen archaic laws and improve enforcement action
* SIT recommendation is to limit cash movement
* We are waiting for public comments before we take a view on implementing these suggestions
* SIT had taken into account big cash recoveries made by law enforcement agencies from time to time and
concluded that the cash transaction limit would succeed if there was a similar cap on Cash holdings
Congratulations on a good beginning !
I am sure , citizens will have some questions about these proposals, such as :
* Will the Cash-Holding limit also apply to Companies ( partnership / private ltd / public ltd ) ?
Especially those Companies which pay out monthly salaries in cash to employees on 7th of each month ?
* Will this limit also apply to NGOs / Political Parties / Charitable Trusts / Hospitals / Govt Agencies etc ?
In such cases , who ( which person - CEO / CFO / MD / Trustee / Party President / Secretary ) is responsible ?
* Will separate limits be applied to ( A ) Cash in bank lockers , and ( B ) Cash in home lockers ?
* What powers will the Income Tax Authorities have to raid / inspect , " suspected " lockers , especially the
bank lockers ? Would they need to obtain a prior warrant ? from which Authority ? Can these lockers be opened
even in the absence of the concerned owner ?
* What amount of punishments are envisaged for those found guilty of paying and receiving ?
* Will enforcement of these proposal require an army of 1 MILLION inspectors , considering that there are over 50
million individual tax payers , apart from 40 million MSME establishments in the country ?
MY SUGGESTION :
# Whereas this is definitely a step in the right direction , it must be thought through very thoroughly so that
ordinary / innocent citizens are not harassed on mere " Suspicion " of holding more than Rs 15 lakh in cash .
# The raiding / inspecting agency MUST have some IRREFUTABLE PROOF that a particular cabinet / locker / safe ,
contains ( beyond an iota of doubt ) , an accumulation of currency notes exceeding Rs 15 lakh , continuously
for a period of 7 days in a row ( - and further proof that this ILLEGAL amount consists of the SAME currency
notes and not different combinations of currency notes , over that 7 day period )
# Any number of shops / establishments , which accept payments of under Rs 3 lakhs in cash from dozens of
customers in the course of a working day , may have , even Rs 20 lakhs in cash at the end of the day !
It is a normal practice for all shop owners to take the cash home at the end of the day and deposit it in their
bank account , the next morning
There must not be any harassment of such shop-owners by the concerned Authorities
# The only way these proposals can be implemented SMOOTHLY and in a FOOLPROOF way , is to implement my
following old suggestion ( sent to Policy Makers , many times in past one year ) :
* Discontinue paper-based currency notes of Rs 500 and Rs 1,000
* Introduce plastic currency notes of Rs 500 / 1,000 which are embedded with RFID sensors
* Assign to each such note, a IP V 6.0 address , linked to its unique note number
* Set up a IT-enabled Technology Platform which will constantly monitor any accumulation of Rs 500 / 1000
RFID embedded notes in excess of Rs 15 Lakh within an area of ONE square meter
Not only this IT-enabled Technology Platform show up all cabinets / lockers having such accumulations ( on the
GPS maps of IT Department's mobile app - BLACK-MAIL ) but it will also provide irrefutable proof of violation
And , a frugal extension of this technology will even create a dynamic CURRENCY MAP of entire country by tracking
the movement of each and every currency note ( Rs 500 / 1000 ) , throughout its life !
And the CURRENCY DENSITY of any State / City / Street !
No need for an army of inspectors , additional administrative machinery , search-warrants , " Panch-Nama " !
No chance of frivolous litigations on part of the so-called " Aggrieved " !
I do hope , our policy makers will cease this opportunity of a life time ( especially in view of forthcoming elections )
15 July 2016
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