Electronic Transactions & Black Money
THE government is planning to introduce some changes in tax reforms, i.e. those who transact through credit/debit cards will get some tax rebate. Is it the solution to eradicate black money? WHEN the issue is black money, the main issue is money. So, the government should concern with how to control the flow of money, not only to regulate few services. To curtail the flow of money, the first thing the government can introduce is that all transactions over and above Rs. 1000/- must be through plastic money. Poor people dont spend that much on a single transaction, but others do. All those transactions will be reflected in bank statements. THE next thing, the government can abolish currency notes above Rs. 100/-. Most, rather almost all transactions are carried out in these notes. All developed countries have printed notes only in small denominations. THE black money is generated though infrastructure, mainly through property construction/sale/purchase; through inflated/deflated