Black Cloud & Black Money, will they come & rain in Country?

CA Umesh Sharma

Arjuna (Fictional Character): Krishna, at the time of arrival of monsoon season farmer keeps watch on the sky. Farmer thinks that will black cloud give rain. Similarly government tries to control black money and apply methods to bring black money in foreign to India.

Krishna (Fictional Character): Arjuna, correctly said. Farmers before starting rainy seasons prepares farm, after wards sow seeds, use fertilizer, etc. in the farm and then waits for black clouds to rain. Farmer has to expend lot of money before getting produce and there is no certainty of getting produce also as it all depends on nature. Similarly government is initiating various measures for reducing black money, but how many of them will be fruitful that god knows. Many a time black cloud does not rain in the area where they are seen, similarly many people hides black money in other country. That’s why government has issued a notification on 2^nd July 2015 under “Black Money and Imposition Tax Act, 2015.” Government’s intentions are good but corruption and very slow implementation of these laws is the Hurdle. As in India some don’t have water to drink and few politicians, businessmen, bureaucrats have Lots of water; same is the situation of Money. It is said that water and money both founds their own way to move. It’s the Law maker’s responsibility to distribute it to all and balance, they only any country will prosper.

Arjuna: Krishna, What measures government has undertaken to curb the black money?

Krishna: Arjuna, black money means the money which is not shown in books or earnings on which tax is not paid. For rains farmer pray with all rituals, similarly government undertakes various measures to curb the black money. Some of the important measures undertaken are as under:

1. Government in the budget has announced restriction on immovable properties transaction above Rs. 20,000/- in cash from 01/06/2015. Due to this black money involved in immovable property transaction will reduce.
2. From 01/06/2015 the provision of deduction of TDS on the Fixed deposits in Cooperative bank has been started. It will help to reduce the black money.
3. Mentioning of PAN has been made mandatory in various transactions. For e.g. on purchase of gold above Rs, 1 Lakh mentioning of PAN has been made mandatory.
4. Government is trying to get the list of Indians having account in Swiss bank and taking appropriate action against them.
5. For curbing black money transaction within India “Benami Transaction Bill” has been presented in the budget.
6. For undisclosed money and assets in foreign of Indians government has passed “Black Money and Imposition Tax Act, 2015.”
7. As government is giving stress on Digital India similarly due to digitalization the sharing of information between various departments of the government will increase. Due to this government will come to notice the undisclosed income.

These measures of laws are like Plantation of tree for rains and save nature by Government. Buts it’s the responsibility of Citizens to nourish, protect and grown them. Otherwise there laws will die like unwater plant.

Arjuna: Krishna, What is given in “Black Money and Imposition Tax Act, 2015?”

Krishna: Arjuna, on 26^th May 2015 “Black Money and Imposition Tax Act, 2015” was passed and it is applicable from 1^st July 2015. This act is for undisclosed income and assets in foreign country. Government has given an opportunity to the taxpayers for disclosing undisclosed income and assets in foreign country. In this a declaration in Form 6 will have to be given to the income tax department on or before 30^th September 2015. After that, taxpayer will have to make payment of income tax @30% on the undisclosed income or assets and penalty of 100% on tax on or before 31^st December 2015. Further government has given the methods of valuation of undisclosed foreign assets and other information through notification of 2^nd July 2015. It is said that clouds arrived but will rain come? Similarly provisions, schemes are made but whether black money will come? This is the biggest question. As Indian agriculture depends on Mansoon Black Clouds coming from outside India, like wise Indian Economy needs to bring back Black Money from outside India.

Arjuna: Krishna, if taxpayer have not availed this opportunity then what will happen?

Krishna: Arjuna, in this act there are various harsh provisions. On undisclosed money and assets taxpayer will have to tax @30% and penalty @90% on the value of assets. Further imprisonment of 3 to 10 years may also have to be faced. As if rain did not come all money spent on farm goes in soil. Similarly if this benefit of this scheme is not availed then the taxpayer will have to pay more tax than he earned and problems will have to be faced.

Arjuna: Krishna, What one should learn from this?

Krishna: Arjuna, in monsoon black cloud come and gives rain likewise this act is to bring black money in abroad in India. Black Money and Black Cloud both are uncertain. Question of black money in India also prevails. For this like government stores water of river by dam, lake, etc. and thereby in all have water in all months. Similarly by preparing and implying strict laws by government black money can be reduced. As where water goes, where black money goes is difficult to find. This is like cancer non curable decease. There are remedies but are very difficult. Government knows but does not perform therefore Supreme Court keeps watch on all these things. Only due to orders of Supreme God, black clouds gives rain and likewise only due to orders of Supreme Court black money will come to India. Thus save water for future of our child, like wise stop black money for future of our country where our child will live.

Dear readers, your comments on this important topic are welcome.