Wednesday, November 9, 2016

It's All In Black & White

People don't have any idea what's black money. Guys remember last month when you checked out of that hotel, the receptionist asked you if you need tax bill and you said you didn't need bill with a smirk? The Rs 2000 that you paid became black money the moment it was gone from your hand.

Or that Rs 100 you paid for a pirated dvd on roadside yesterday. That became black money and is now on its way to help drug Lords & terrorists break our nation apart.

Or that medicines you bought without tax bill and that electronic shaver which you bought from smuggled goods store. The money that you handed out is black money now.

You bought a piece of land showing paper value 5 lakh and paid 40 lakh. 35 lakh that you paid has now become black money...

That donation you paid without receipt to secure a seat for your kid in that posh school and that 500 that you paid the policeman to escape from his long hands has also became black money.


What happens is that all this amount moves out of the mainstream economy. Then it starts it's journey towards its masters. Because once it moves out of control all transactions that use this money will be nefarious,  illegal ones. Finally it reaches the coffers of hoarders. For hoarding money, obviously you need bigger denominations like 500 and 1000s. Now when these denominations are banned, suddenly all these currency gets worthless. But for all those who have genuinely earned white money, government has given chance to deposit in banks after revealing source. 

But it becomes impossible for black money to get legitimised because it's tough to reveal sources. May be a small portion may escape.

Now government has a clear account of how many 500& 1000 Rs notes is in circulation. It has to just check how much is returned to it. Remaining is a deficit which government can compensate by printing new currency. And this currency can be used for developmental and beneficiary purposes.

So any unaccounted money acquired illegaly gets back to government in a single stroke.


2 comments:

  1. This post answers a lot of questions I have in my mind regarding the black money concept. Thanks.

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    Replies
    1. Thank you Tom. Happy to know it was useful

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