Yes, there are a few. And they might help us get black money back in India. Let’s look at the history of such negotiations to learn more about them and hone your understanding for Probable questions for IAS Mains.
The UN, through its Office on Drugs and Crime, which leads the fight against illicit drugs and international crime, has been given the responsibility to implement the convention, particularly its assets recovery provisions.
One more step in fight against black money. Note it for mains as well as prelims. See what are shell companies in b2b.
What is a Shell Corporation?
Reasons to Legitimately Set Up a Shell Corporation
Ways That People Abuse Shell Companies
Not very important news but you should be update with few such happenings.
This is one more step towards bringing unaccounted money into legitimate circulation and penalising those possessing it. It can be important for prelims.
The Pradhan Mantri Garib Kalyan Yojana (PMGKY):
Fight against black money:
The budget 2017 provides an opportunity for the Modi government to unleash a big bang reform in personal income taxation. The economy provides scope and demonetisation, the rationale for a flat income tax rate and a negative income tax for the poor and the needy.
Taxes in India are levied by the Central Government and the state governments. Some minor taxes are also levied by the local authorities such as the Municipality. The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that “No tax shall be levied or collected except by the authority of law”.
India follows Progressive Tax System. Progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A higher tax is collected from the taxpayers who earn more and lower taxes from taxpayers earning less. The government uses a progressive tax mechanism.
Steps against Black Money:
Crime using paper currency:
The PIB release is a good insight into what measures the government has taken regarding black money. Indians need to be seriously educated regarding corruption so as to fight this menace. Note down the points for your Mains answer.
What is benami property?
Benami Transactions (Prohibition) Act 1988:
Benami Transactions (Prohibition) Amendment Act, 2016:
Underdeveloped Bond Market in India:
Need for re-monetisation with special focus on credible rating agencies:
The future of the cost of service in digital payment space:
Black money and effective measures around the world:
The op-ed is a complete analysis on demonetization, black money and mobile wallets. Make notes for your Mains. We have divided it into smaller segments so that you can focus at ease.
All govt schemes and decisions are important for UPSC.
Pradhan Mantri Garib Kalyan Yojana – The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’. This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality.
This editorial is a holistic account of cons of demonetization. It covers all aspects. Make your notes. Read the B2B for interesting trivia!
Other countries that have taken the road to demonetization:
As of now, the jury is still out on how useful the demonetisation exercise will prove to be. Exactly how much money comes back will be an important factor. The picture should get clearer in the coming weeks.
This development indicates a sustained effort on the part of the govt against black money. Make notes of such developments, it helps to enrich mains answers. Also note the Pradhan Mantri Garib Kalyan Yojana.
Undisclosed income detected during each survey has shot up drastically in two years
The Union govt. has received 644 declarations for black money worth Rs. 4,164 crore.
India has been ranked the fourth-biggest source of black money, with $510 billion worth of illicit financial flows during 2004-2013, or $51 billion annually, on average.
Indian govt will start receiving information of overseas assets from other nations and failure to disclose them will become a very risky affair from 2017.