How does the Government plan to remove black money from India ?
Step 1 : Demonetise Rs.500 and Rs.1000. get Rs.1420000 crores out of the market.
Step 2 : Print Rs.2000 and Rs.500 and Rs.100 in the replacement market.
Step 3 : Dismantle the cash economy by not allowing any cash transaction above Rs.10000 without PAN or Aadhar.
Step 4 : All salaries and business expenses required to be made in cheque or RTGS only to claim expenses in Income Tax. All cash transactions to be disallowed.
Step 5 : A Cash Limitation order will be issued that will allow only maximum cash allowance of total Rs.50000 per person.
Step 6 : As the cash economy is destroyed after a few months, the Rs.2000 note will be demonetised with a limited notice.
With very limited cash available in the market, the cash economy will be strangled to death.
Step 7 : As some of the cash economy will try to shift to Gold, Gold coins manufacturing and imports will be banned.
Step 8 : A Gold and Precious Jewellery control order will be issued which will allow only 500 gram of Gold per person and a certain value of other jewellery. Relaxation will be given for existing jewellery if declared to authorities as per format. After a certain date, all undeclared Gold and jewellery will be liable to be taken over by the state.
Step 9 : A Property and Asset Declaration order will be issued where all property (Land, Buildings and Flats) and shares will have to be declared to the authorities in a particular format. After a certain date, all undeclared property or shares will be liable to be taken over by the state.
That will complete the removal of black money from India.
1. Shift finanial year to Jan Dec to avoid mismatch with global economy and minimise laundering avenues
2. Scrap income tax in phase 1 and have BTT and GST
3. In phase 2, when India is fully banking and fully digital, scrap all indirect taxes and have only BTT