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Saturday 17 December 2016

[[[[[ However small steps these may be]]]]]


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“The man who removes a mountain
begins by carrying away a small stone.”
..~Chinese proverb
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Demonetization is just the beginning of carrying away The Smallest of Stones that in the process will be used to built a Strong Nation helping everyone give a fair sunshine of growth.Operation Tax Theft begin the moment the PM Modi announced Demonetization of 1000/500 when people began purchase of Gold on 08-11-2016 night itself just after PM Modi ended his speech.And it continues in so many innovative ways of turning it into white.For Indians there is always a Jugaad of Silver-lining in dark clouds of demonetization for them.The Black Parallel Economy constituting of Black Currency,Black Income and Benami Property are the three mountain hills of road blocks in the development of our country and to remove or mitigate the disparities in the living standards of the people of our country.India despite its GDP growth of 6-8 % is still a country of "Have" and "Have not".Does this %age matter if the benefits of the growth are not reaching the poor-the Poor of 'with No Roof over their Head' Kind, The Poor of Malnutrition Kind , The Poor of No School Nearby Kind,The Poor with No Basic Health Facilities Kind , the Poor with No Electricity in House Kind and the Poor of misfit in jobs Kind.The politicians have to be of statesmanship kind to lead the youth constituting of more than 75 % of total population.The gaps will become hugely visible if corrective "however small steps these may be" are not taken to lay the foundation of an overall Super Nation.A nation cannot be super if all the 133 crores plus do not have their daily supper and sleep on empty stomach.You need not be a superman but a super patriot to change the face of the nation by doing the Right Karma wherever and whichever position you are.Demonetization has set a chain of events of financial churning which will certainly yield Rattans for common man and Poison for Black money, Fake Money, Drug Money etc.Events of late has proved that Indians who pretend to loathe corruption have not left any stone of Black Ideas unturned to derail the process of Carrying of Stones of banned notes and new Jugaads have been mis-invented to make black more darker.Every dark cloud comes with a silver lining and post 08-11-2016 Dark Demons of anti-Demonetization have left many sparkling trails of where the Black has gone and from where it has come at least for higher amounts of above lac.During this period, I happen to witness so many interesting faces that divulge the desperate lengths people can go to evade taxes and dump money.The Greedy Cats colored green and red are still lurking out there with bags and now new currency in lockers.All the owners of black money are hell bent upon keeping it still in BLACK darkness away from the IT eyes and it shows on their faces, actions and speech.Countless ways have been adopted to accumulate the purple and convert it into Black again.A step of such magnitude could not have been planned to great details due to the handicap of secrecy but the Govt. has taken the proactive decision as and when the problems arose.It is a good thing that the step has exposed so many people and also brought out so many good things out of people.Black Money is Like an Iceberg with one big difference - the smaller chunk whitish portion stands in Bank Queues !The bigger hidden black submerged suited booted portion is melting due to heat of Demonetization !It also exposed that India can become a land of crooked commission agents - Money Ke Liye Saala Kuchh bhi Karega !Everyone talks about corruption but when it comes to do something about it -politicians are on the road resisting about the measures instead of helping in implementation and suggesting improvements.It is all about that the other party should not take credit about it.
What we see depends upon mainly what we look for !....~John Lubbock
In a country of 130 crores population only 1+ % actual discounting minimum notional tax are actual tax payers. In a country witnessing good economic growth , the figure is far below expected levels.As per opposition the rest who evade taxes park it in Swiss banks- is laughable.The Govt. gave a fair chance to tax evaders to come out. Rs 65,250 crore had been collected only from 64,275 declarants from 99% of remaining 125 crores or say 50,40,30 crores ( you choose the figure of your estimate) eliminating the agriculture income and children under IDS 2016.The Govt.made it clear that it didn’t intend to benefit non-tax compliant vis-a-vis tax compliant. Demonetization effects and results will be there to see in tax collections in the coming years and the notices are out already before the process has been completed.Instead of declarants coming out , now the Govt. has forced the currency out in one go which would have take another 70 years to make them tax abiding citizens with meager number of machinery and man power at Govt's disposal.The collections of arrears in various taxes, overdue of consumption bills are indicating the sign of things to come.When all the parties agree that it is a good move then instead of helping in implementation why they are asking for a roll back or issuing threats.Once the kitty of Govt. is overflowing with increased tax collection; proper implementation of indirect taxation on expenses and roll out of GST and left overs of 1000/500 not deposited back for exchange,it will be appropriate and right timing for the PM to make the taxation simple with even at a flat rate of 5% on say 10 or 15 % population identified under Demonetization Churning yielding more than the present collections in all types of taxes put together.A bold step of this nature cannot anticipate the outcomes and problems in advance due to its secrecy but has to be taken to improve the health of the economy and diminish the parallel economy.And it is now up to the Govt. to see that the outcomes are visible for the common man with sincere post care of Operation Demonetization.

[[[[ Demonetization is a revolution - Sacrifices have to be made ]]]]


India of billions is yet to have a roof over the heads of teeming millions.The 08-11 Declaration has set a chain of events.I was really moved by a recent news of a father who gifted the key of 90 new built houses to poorest families.This fund for this noble gesture was raised by him out of 1 crore he had saved for the marriage of his daughter.Demonetization just made him conscious to set his priorities right.The families staying there are going to constantly pray for the welfare of his family and married daughter. I have an inkling that it is going to be one of the hugest Tax Collection year for India which will allow to add fresh entrants to the list once the taxes are lowered further.The signs have already begin to show with all municipal taxes , property taxes arrears, electricity arrears.The RBI is going to write off not the expected levels of liability but there will be a decent amount of crores since money is not going to find its way back into circulation.Once India wakes up to the Less Cash economy, even One LAC Crore pieces of say Rs.2000/= denomination is going to save RBI a sum of Rs.3-4 lac crore of rupees.You have to be in A Bank Branch to see the kind of money which has seen the light of the day by coming out of lockers.The very definition of money is violated when it is kept like Raddi paper in lockers and does not change hands.The impact is much larger in the long run.This is going to put a retarding effect on spread of corruption and black money and if the need arises who says 2000 can not be demonetized again.A single currency demonetization contribution in money circulation may be less percentage and will not cause this kind of inconvenience the people are facing. We are leading to a stage where things and transactions will become more transparent and accountable in the time to come.India is ready for digitization of currency and digitization of financial transaction at micro levels.The real estate fulfilling the need of common man has already seen a big slump in price.That is the end of corruption and evasion of taxes which is just one of the major cause of corruption.Even if these purposes may not seem too important to many , the bigger purpose of stopping Hawala, Drug , Terrorist activities and fake money in itself is the biggest outcome of Demonetization.Last Word :First, a mechanism has to be developed to replace the bad money with good money- Rs.2000/=replaces 4*500 or 2*1000 to bring the temporary hitch in economy back on rails of normalcy.
...~ashok "anubhav"

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