Thank You , Narendrabhai !

Newspapers this morning report that, on Tuesday ( 29th Nov ) , government will introduce in Lok Sabha , an amendment to Income Tax Act

As per this ( expected ) amendment , Black Money holders would be able to deposit , OLD notes ( Rs 500 / 1000 ) into their OWN bank accounts, with following proviso :

#  Those willing to invest in GAREEB  KALYAN  YOJANA  Bonds :

    *  Deposit old notes { before 30th Dec } and inform IT DEPT, desire to avail of Bonds 

    *   Pay 30 % tax + 20 % penalty on this " Disclosed " but " Unaccounted " money

    *   25 % locked in for 4 years in Gareeb Kalyan Yojana Bonds ( at 0 % interest )

    *   Keep / Use balance 25 % for PERSONAL  USE

    *   Protection from further prosecution

#  Those failing to avail of GAREEB KALYAN YOJANA Bonds :

    *  Deposit at any time ( before or after 30th Dec ) but fail to inform IT department 

    *  Pay 30 % tax + 60 % penalty on this " Undisclosed " AND " Unaccounted " money

    *  Keep / use balance 10 % for PERSONAL  USE

    *  Face prosecution if unable to explain ( - and possible 4 year jail term )

Dear Shri Narendrabhai :

If true , what you have planned is an improvement over the type of " Amnesty " that I had suggested in my email of 15 Nov 2016 ( to you and your Cabinet colleagues ) viz ;

{  http://myblogepage.blogspot.in/2016/11/take-wind-out-of-their-sail.html  }

  *  Black Money Holder to deposit 100 % of his hidden / unaccounted money in specially

     created Bank Accounts of :

     Prime Minister Relief Fund / Armed Forces Relief Fund / Environment

     Rejuvenation Fund / Pollution Solution Fund / Ban MalNutrition Fund ...etc

*  No need to reveal identity / source of funds / Upper limit of deposit  

*  No prosecution but can keep / use  0 % for PERSONAL USE ( 100 % surrendered

   to Govt )

HOW  IS  THIS  AN  IMPROVEMENT  ?

Considering the following :

*  As of yesterday , some Rs 65000 crore have been deposited in Jan Dhan Accounts

*  At an ave of Rs 50,000 deposit per account , this may well represent 130 lakh accounts

*  That is , deposit in 10 lakh account EACH DAY , for past 13 days ! And no letting up !

*  But , in all , there are 25 Crore Jan Dhan accounts

*  If Rs 2.5 lakh were to get deposited in each, that would amount to Rs 62.5 lakh*cr

*  In a written reply in Lok Sabha last week , Minister of State for Finance , Santosh Kumar

   Gangwar said that , as of Oct 31 , 2016 , 238 prosecution complaints have been filed and

   and properties worth rs 18,866 cr have been attached

*  Based on the information submitted by Indian Authorities to the US as part of

   cooperation , the INSCR ( Integrated Network for Societal Conflict Research ) states ,

   " ... the government has not won any court cases involving money laundering or

    confiscations ... Money laundering investigations without a predicate offense are rarely

   successfully prosecuted in the Indian judicial system and even if they are , the resulting

   punishment is often minimal "

*  As pointed out in my earlier E Mail ( 23 Nov ) , trying to prosecute  few lakhs ( may be a

   few crores ) of Jan Dhan account holders is SIMPLY IMPOSSIBLE !

In light of the foregoing and that proposed amendment to Income Tax Act ,  it would be

reasonable to assume that , between 01 Dec and 31st Dec , we may expect :

   #  Rs 10 lakh*crore to get deposited in bank accounts and declared to IT department

   #  Of this , Rs 2.5 lakh*crore worth of Gareeb Kalyan Yojana bonds to get issued

       How can we use this money for the ultimate Gareeb Kalyan ? Here is my suggestion :

       Our 20 cr citizens below the poverty line ( BPL ) comprise 5 crore GAREEB families

       If this bond amount of Rs 2.5 lakh*crore was to be deposited into the Jan Dhan bank

       accounts of these 5 crore families , that would mean Rs 50,000 for each family !

       And that simple arithmetic would save 12 lakh children dying from malnutrition each

      year ! 

I cannot envisage a better use of BLACK MONEY !

   #  Political Parties handing over their own UNACCOUNTED monies to their loyal supporters

       to deposit into their own bank accounts and buy those BONDS !

       Retaining 50 % is any day better than losing 100 %  !

       Of course , when the Income Tax amendment gets introduced in Lok Sabha on Tuesday

       expect the Opposition Parties to label NDA government as the biggest HAWALA

       operator , who wants to compete with the road-side operators ( whose current going

       rate is 30 % ) and converts your Black Money into White Money by taking 50 % cut !

Dear Shri Narendrabhai :

With the proposed Income Tax amendment , you would have won the current battle

But , in order to win the WAR ON BLACK MONEY , I request you once again to ,

EMBRACE  THE INEVITABLE

{  http://myblogepage.blogspot.in/2016/11/embrace-inevitable.html  }

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26  Nov  2016

www.hemenparekh.in / blogs