Black money: How government can increase tax compliance

Abstract

There is a need to reduce dominance of cash transactions and encourage electronic banking to enhance technological surveillance. A number of disclosures on black money or unaccounted money have been made today, and even earlier by foreign institutions. In India, tax authorities have regularly been conducting raids and recovering large amounts of unaccounted money for years.

The menace of black money is widespread and deep-rooted in India spanning a number of issues. First, number of income tax payers has been generally low. In a population of 1.2 billion, there are just about 35 million tax payers of which, famously, there were only 42,800 persons with taxable income exceeding Rs. 1 crore. This is too low a number in a country which has numerous luxury houses and cars; accounting for world's largest gold imports; and flourishing stock markets. The issue of tax exemptions and inappropriate use of such exemptions also needs investigation. Read more at: https://www.dailyo.in/business/black-money-how-government-can-increase-tax-compliance/story/1/1927.html