Budget 2015-16: Black money law with no safeguards
may up corruption, graft.
Black money law essentially is draconian in nature. They will enable the taxman and the investigating agencies to wield enormous power against citizens. The potential for corruption and graft will escalate, not reduce if these powers are not counter-balanced with safeguards.
R Jagannathan Firstpost.com Budget 2015-16 has a lot of things to say on black money, and promises to wield the big stick against black money holders in India and abroad. Arun Jaitley’s announcements and proposed actions embed three elements: one is to deter black money generation by disincentivising cash transactions; the second is to improve the government’s ability to track potential black money deals by monitoring and sharing information with the investigative agencies; the third is about changing laws to increase punishments for holding undeclared black money abroad or at home. All three are needed, but are essentially draconian in nature. They will enable the taxman and the investigating agencies to wield enormous power against citizens. The potential for corruption and graft will escalate, not reduce if these powers are not counter-balanced with safeguards. Draconian laws can be justified only if people are offered a chance to come clean. Or else, they will not work. For example, the Finance Bill includes a “proposal to amend the Income-Tax Act to prohibit acceptance or payment of an advance of Rs20,000 or more in cash for the purchase of immovable property. Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh.” This sounds innocuous, but how will any taxman know if I have paid more than Rs 20,000 in cash when I buy property when reported transactions may anyway be undervalued to avoid stamp duty? Will this be done by intrusive checks of bank accounts or by aggress
Read more at: http://www.moneycontrol.com/news/economy/budget-2015-16-black-money-lawno-safeguards-maycorruption-graft_1317907.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/economy/budget-2015-16-black-money-lawno-safeguards-maycorruption-graft_1317907.html?utm_source=ref_article
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