The Government of India withdraws the Legal Tender character of the existing bank notes in the denominations of Rs. 500/- and Rs. 1000/- issued by the Reserve Bank of India on the mid night of 8th November 2016. The promissory clause printed on the banknotes i.e., “I promise to pay the bearer the sum of Rupees ……..” is a statement which means that the banknote is a legal tender for the specified amount. The obligation on the part of the Bank is to exchange a banknote with bank notes of lower value or other coins that are legal tender under the Indian Coinage Act 2011, of an equivalent amount. Therefore, exchange of genuine notes how a subjective method introduced adding with additional clauses/ restriction etc. skipping the promise mechanically without required amendment of the Acts. In addition, lots of suffering to the people.
Reason announced by the Government is the incidence of fake Indian currency notes in higher denomination has increased, the ordinary persons could not identify the fake notes, the anti national and terrorists are being used fake notes to full fill their misdeed. High denomination notes misused as so-called black money, cash based India economy floated with fake Indian currency notes, to hold the rising incidence of fake notes, black money and earning of money by corruption etc.
As regards introduction of new notes, is it confident that no further fake currency turn up? Is it indispensable to stop the terrorist activities more willingly than improvement of intelligence performances? What is black money? It is a popular term for ordinary people. The term money simply means currency and coins. Currency in a form of Banknotes issue in the denomination of Rs. 10/-, Rs. 20/-, Rs. 50/-, Rs. 100/- Rs. 500/-, Rs. 1000/- and Rs. 2000/- by the Reserve Bank of India. Of course, rolling of money occurs without paying direct taxes by somebody. Now the question is that, what is the number of such tax (direct tax) evaders? It is not more than 0.08% of total population. A good number of peoples are not submitting their I.T return due to ignorance and fear of Inspector-raj or vindictiveness of I.T. Acts. Often it noticed that the person submitted I.T return is facing fine in high rate for petty mistake in addition to that on line submission of I.T return is not familiar by all taxpayer due to ignorance in digitized knowledge. To deposit the taxes up to Rs. 10,000/- by the lower middle class people have to pay another amounting to Rs. 3,000/- to Rs. 4,000/- to the tax consultant. It is overburden to the lower class taxpayer.
It is expecting that against ban bank notes in the denomination of Rs. 500/- and Rs. 1000/- for Rs. 15.44 Lac Crore more or less 92 % the currency would come back into the system.
During the period from 9th November’2016 to 31st March’2017, the functioning of rural market in the state prevails in financial depression, before that no decision comes in to force so far. Adoption of any economic policy ignoring rural market directly hampered the lively hood of poor sectioned population. The forceful effort toward enhancement of revenue against the traditional mindset may lost the patriotism and faith to the section of public because 32.6% (approx.) population of India living with the educational qualification below primary level. In other way 27.6 % (approx.) total population are living below poverty limit and their purchasing power confined below Rs. 80/- per day, so cash less economy come as revulsion in their lives. If we calculate, unaccounted revenue amounting to Rs. 2.48 Lac Crore will deposit to the Govt. Exchequer down to the exercise of demonetisation programme and after deducting the fiscal expenses, fiscal loss occurred during the transaction period of the scheme, value at allegation on abused power, irrevocable damage of lives. If we agree with the opinion highlighted in media that the amount is belongs to people living below poverty rim and the same amount may be given to them as one time financial support for their livelihood, thus they would get Rs. 5,246/- per head only. Is it a big achievement in welfare to the poor section of people? Accordingly, the programme seems as lack of balance sheet.
An individual from middle-class and upper middle-class family earns more than Rs 2,50,000/- in a single financial year is found as tax evader. Nevertheless, it is not analysis why they go for non-payments of taxes in India that is due to excess rate of taxes. Indians are paying about twenty-five different taxes directly or indirectly. A person is giving income taxes as per prevailing rate on his income as an individual whereas the incumbent maintaining other unaccounted family members being depend upon him.
Indian democracy is in threat of perverted destiny. Party politics occupied prime role in spite of restoration economic growth and welfare of the state. Mass people are living lack of political and economic acquaintances including sculpture of living, they belongs to less skilled, idle in nature, unhealthy dreams, poor professional zeal consequent of which suffering from frustration and they are very much fond of with sexy part of the demonetisation. The middle class people engaged themselves in enhancement of economic status in exchange of effort and professional enthusiasm. The political institution of the state now creating a tussle in between poor and middle class and propagates the poisonous jealousy that may lead to a panic in the society. Before independence, King administrated India applying divide and role policy to break the national unity tagged with freedom movement. At present, we are approaching towards economical disaster. Is it the initial step to decline the purchasing power of the nation? Small and medium-scale industries are in dilemma pro plummeting sale, relatively fate of about 82 million people all over the country associated there is in snag. In isolation, reduce the income of poor working class including consumption of liquidity eventually adversely influenced. It is not wise to be jealous to the prosperity of middle class but to consider as a national asset. Bring them in sharing with national growth without giving punishment. The political parties earns cores of money without showing any source for which no penalty has been imposed because the idiom “Might is Right” is still universal truth, the following income statement of different political parties are seen in a news items. There is none in the state to bell any of the following Cat.
|Name of Political Parties||Income from unidentified sources.||Period|
In contrary, if a person deposits the I.T. Return, showing Rs. 10.0 to Rs. 12.0 Lac income in a year without valid specification of sources the person concerned will liable for penalty. All the same as to why the political parties are not liable for unidentified source of income. This is bad and estoppel to the equity and justice for the nation. To make the complication in tax return is the prime cause for creation of tax evader. Policy and Lawmaker feels proud to make the Law with hindrance consequent of which implementation and exercise of Laws sometime lost its course.
The demand of hour is to reform the tax system, make it familiar, provide protection in e-banking provision, people became victim of hacking by unidentified hacker, as if Insurance Company tied with bank availing the advantage of e-banking earns against Health Insurance Scheme from the saving of poor literate individuals by way of trapping. Provision of cash less transaction may be made mandatory but exercise of the facility could not be obligatory. Proficient individual is avails the service happily, if it is not hot for it’s service charges. It is also pertinent to bring immediate economic stability to facilitate the Foreign Investment being an important part of the economic growth.
The demonetisation policy adopted in a democratic country like India is not hold good for the welfare of the common people. There are so many drawbacks of this policy such as without proper planning just wants to give eyewash in the name of poor people. Indeed, poor people rather suffer much more than the rich man in the shape of economic emergency.
In fine, economic gain of a nation is more precious before the gain of political parties. Political institution keeps the eye open for well being of the society as a whole, but not pertinent to a section only. The nation amassed of various religious groups, economic classes, classes in literacy etc. hence dispersal of conflict amongst the citizens is a dire message to the nation. The battle should be for self-sufficiency and against the dependency. A self-sufficient State can overcome global economic disaster. Citizen believes in affirmation of Government and desire to live peaceful disarray free life accordingly good governance substantiates the trustworthiness to the followers.