Black money is a economic malady of many countries. The country which controls the Black money use to be considered as rich country. I have a dream of Black money free India. I will discuss the methodology to avoid the Black money. They are as follows :
1. In the developed countries, all the salaries and other transactions use to take place through the bank account. The Income tax would be deducted at source. Manual handling of cash is prohibited or negligible instances. The purchases use to be done through debit or credit card. Hence, money spent is accounted.
In India also, we should encourage or insist for account payments only. For instance, if a person is paid his salary in account.He is ensured of minimum wages. He can be forced to make payments through debit card. This system also answers to the counterfiet currency and saves alot amount of printing and minting charges.
All the moderate shops should be forced to accept the debit card or credit card payments and cheque payments from the customer. The machinary should be supplied at low cost or free of cost.
Also , on the lines of opening of Bank accounts, people should be forced to obtain the debit cards and insisted for making payment from it. Thus, many maladies including the Black money will be answered.
2. Government of India is thinking to introduce the Go India smart cards to purchase the RailWay ticket with the cashless transaction. 5% concession would be also given on purchase through this card. This allows the payment with accountability.
Similarly, RTCs and airline companies can emulate this initiative. Such initiatives in all the sectors addresses the Black money issue.
3. One organisation in maharastra has proposed the transaction tax. All the transactions should be done through the bank accounts and 0.1% amount should be collected as transaction fee, duly abolishing all other taxes. This ensures the collection of maximum revenue while addressing the Black money.
4. The Real estate sector is one of the main source of Black money. There use to be a lot of variation between Registered value and market value. Hence, most of the payment use to be in Unaccounted money. Government have already taken steps to decrease the stamp duty and increase the Basic value of land, so as to narrow down the gap between Registration value and market value.
5. Film industry is also one of the sources of Black money. All the production cost , remuneration of main artists use to be done by unaccounted money. All the payments must be made through the Banks. So that unaccountable amounts would be curtailed.
6. The existing slabs in the Income tax is very high compared to other countries. The employees have to pay huge amount of IT on lawful amounts. Other business people , who earn much more than that evades the tax. The same systems have to be changed.