5/14/2015

BankersAdda:SBIPO2015:BringingbackBlackMoneytoIndiawillincreasetheIndianRevenue,butshouldthenamesberevealed?

SBIPO2015:BringingbackBlackMoneytoIndiawillincreasethe
IndianRevenue,butshouldthenamesberevealed?
HelloReaders,
OnaccountofSBIPO2015forthepostofProbationaryOfficer,herewe
areprovidingyouallanessayon"BringingbackBlackMoneytoIndia
will increase the Indian Revenue, but should the names be revealed?"
Hopeyoulikethepost!!!

TheNarendraModiGovernment'seffortstocrackdownblackmoneyabroad
will have a significant boost in the Indian economy. The Swiss Government
havealreadyextendednecessarysupporttotheSITonblackmoneyandis
willing to work with NDA Government in power. Infact, the names of some
Indian individuals and entities have already come under the scanner of the
Swiss authorities during an ongoing exercise to identify real beneficiary
owners of funds held in various banks operating in Switzerland, a senior
SwissGovernmentofficialhassaid.TheseeffortsbytheSwissGovernment
will help the Indian Government to a great extent to weed out corruption. In
one of the latest report the Swiss banks have revealed that India has more
moneystashedinSwissbanksthanthecombinedothercountries.

According to a 'White Paper on Black Money in India' report, published in

May 2012, the Swiss National Bank estimates that the total amount of
depositsinallSwissbanks,attheendof2010,bycitizensofIndiawereRs
9295 crore or $2.1 billion. The Swiss Ministry of External Affairs has
confirmedthesefiguresuponrequestforinformationbytheIndianMinistryof
ExternalAffairs.However,mediareportssaythatthetotalamountofmoney
parkedinSwissBanksisaroundRs1400crore.Rs9295croredepositedin
all Swiss bank by Indians at the end of 2010, the black money or the
unaccounted illegal money may generate from activities like, illegal trade,
smuggling, trafficking, terrorism, counterfeit currency, corruption, arms
trafficking, etc. Apart from these activities, illegal money is also a part of
dishonestindustrialists,corruptbureaucrat,scandalouspoliticians.Theblack
money is one of the major reason for foreign debt in India leading to high
fiscal deficit. If the unaccounted money is brought back, the entire foreign
debt can be repaid in 24 hours. The Government's revenue is severely
affectedtorunningofaparalleleconomyinthecountry.Taxevasiondeeply
affects Government's revenue and if some reports are to be believed, the
amount of unaccounted money in India equals to 40 per cent of the GDP
(gross domestic product). The running of parallel economy in the country
have also encouraged corruption which is deeplyrooted in Indian society.
The NDAGovernment's recent move to seek details from Swiss banks will
be one of one landmark step in eradicating corruption. Many hawala
transactions operating in the country also contribute to circulation of black
money. The real per capita income of the people and the national income of
the country are shown as low due to these unaccounted transactions. If all
the black money circulating in the economy is flowed back into the national
economy of the country, there will a substantial rise in the real incomes of
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5/14/2015

BankersAdda:SBIPO2015:BringingbackBlackMoneytoIndiawillincreasetheIndianRevenue,butshouldthenamesberevealed?

the people and the national income of the country. The illegal money
circulations also create inflationary pressure as Government raises tax rate
duetoitsexpensesinordertobalancethebudget.Terrorism,drugtrafficking
hasbeenamenacefortheIndianGovernmentandthemoneyusedforsuch
illegal activities have also effected the Government's revenue. The Special
Investigation Team (SIT) on black money has sought details of all major
cases of tax evasion and criminal financial fraud being probed by various
investigativeagencieswhicharemandatedtokeepacheckoncirculationof
unaccountedwealth.AccordingtoPTIreport,theSIThasrecentlyaskedfor
the data in order to understand the trends and magnitude of the menace of
black
moneyandgenerationofillegalFundsinthecountry,whichisdonethrougha
varietyofwayslikeevasionofTaxesandduties,floutingofforeignexchange
laws,creationofdisproportionateassets,
creation of 'benami' properties within the country and outside and laundering
ofwealthobtainedthroughillegalandcorruptmeans.Thoughwehavecertain
institutionstocheckblackmoneylikeCBDT(CentralBoardofDirectTaxes),
ED (Enforcement Directorate), Financial Intelligence Unit, CBEC(Central
BoardofExciseandCustom),CentralEconomicIntelligenceBureau(CEIB),
we still lack proper legislation to check antinational and illegal activities
which contribute to accounted wealth. Hawala system is one such thing
throughwhichmoneycanbeeasilysiphonedawaytodifferentplaceswithout
anyinquiry.TheIndianelectionprocessisoneofthemajorcontributorto
black money with crores of wealth generated for campaigning for the
candidates in the Lok sabha and Assembly elections. A study by the
MumbaibasedCentreforMonitoringIndianEconomics(CMIE)foundin2006
that each parliamentary poll generates between $10.19 billion and $11.33
billion of black money. The Election Commission has also addressed these
concerns in the recently concluded Lok Sabha election. After last UPA
Government failed to bring back illegal money stashed abroad, the people
have lot of expectations from the new NDA Government in power to check
black money which is severely affecting our GDP and overall Indian
economy.TheNarendraModiGovernmentwho
is already facing severe challenges of high inflation, low growth and high
fiscaldeficitwillhavetostrategicallyplantobringbackunaccountedwealth
overaperiodoftime.TheSpecialInvestigation
Team (SIT) constituted by Indian Government have promised action if any
illegality found. The Government should aim to have transparent economic
managementsystem,whichcanonlyhelptorootouttheevilofblackmoney
andcorruptionfromoursociety.Eventhoughitmaytakeaperiodoftimeto
eradicatecirculationofillegalmoneybutnodoubttheGovernment'sinitiative
iswelcomed.

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