Page 35 - Banking Finance January 2020

ARTICLE

COMBATING

CORRUPTION,

BATTLING

BLACK MONEY

Introduction: 1. The Government has introduced Black Money
(Undisclosed Foreign Income and Assets) and Imposition
Black money is the money which is earned or received,
avoiding the eyes of the Government mainly for the purpose of Tax Act, 2015. It aims to impose tax/penalty on black
money and undisclosed foreign assets. It came into
of evading taxes. As taxes are mandatory for any nation to
effect from 01.07.2015.
grow, black money is a big hurdle in the progress of any
nation. A big part of black money is used for corruption also. 2. Goods and Services Tax (GST) has been rolled out w.e.f.
The corrupt use black money in various ways. Thus, it's a 01.07.2017. Many people used to fudge their account
chain generating each other. Here, we discuss the work books to save tax and hence, they used to transact
done till now and probable solutions to the menace. mostly in cash to hide their dealings. GST encourages
businesses to bring all their sale, purchase into books.
Measures taken by government to curb It will also compel them to route their sale proceed
through their bank account which in turn, will be
black money and corruption in the last
beneficial for their lender also, as it will add to the
few years: confidence of the lending bank, while assessing
About the author enhancement or continuation of loan. Apparently, it is
good for the borrower also, as they will be easily getting

Sanjay Gupta enhancement of limit / loan from their bank.
Chief Manager (Research) 3. Demonetization of Rs 500 and Rs 1000 currency notes
State Bank Institute of Credit since the night of 08.11.2016. It compelled people to
and Risk Management (SBICRM),
(Earlier name: State Bank Academy), deposit their cash in accounts.
Gurugram 4. Promotion of Cashless India (Promotion of Digital

BANKING FINANCE | JANUARY | 2020 | 35