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Move by IT department to unearth black money is a welcome one
A welcome initiative has been undertaken by the Income Tax department in Delhi to scrutinize every property deal in the last year to unearth the sources of black money.
IT IS a known fact that black money forms major portion of almost all property deals. However, the most effective way to detect sources of shabby deals is to have a permanent provision whereby persons may be able to declare income from undisclosed sources in their Income Tax returns.
Usually buyers of property generally insist on paying major part in cash, while sellers prefer getting all payment through proper accounted bank transactions.
System of facilitating disclosure of incomes through undisclosed sources will automatically catch hold of those investing black money in property on the basis of returns filed by those having sold.
Unaccounted money is also being largely invested in gold and silver. There is every possibility that money deposited in foreign banks and now being transferred to India through various routes may be responsible for sudden unprecedented continuous rise in prices of gold and silver.
It is wrong to say that price of gold rises due to global trend because India being the largest purchaser of gold sets the global trend. Therefore, other measures to effectively replace cash-deals by banking transactions should be taken so that excess currency may be practically paper of no practical use.
Models of advanced countries should be studied where proportion of currency circulation is much-much less than as in India. India can also follow advanced countries to discontinue printing of high denomination currency of rupees 500 and 1000.
Validity of pay-orders/drafts should be reduced to 40 days to prevent ‘benami’ drafts as carriers of black money, usually a common feature in major cities.
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