By : M.S.Yatnatti: Editor and Video Journalist Bangalore : Reportedly Kala dhan is created by the people who do not pay tax for their earnings.In India, Black money refers to funds earned on the black market, on which income and other taxes have not been paid. The total amount of black money created in corruption deals is unlimited and quantum is unknown. Effective and credible deterrence is necessary in combination with reforms, transparency, simple processes, elimination of bureaucracy and discretionary regulations. Credible deterrence needs to be cost effective, claims the report. Such deterrence to black money can be achieved by information technology (integration of databases), integration of systems and compliance departments of the Indian government, direct tax administration, adding data mining capabilities, and improving prosecution processes. Time is ripe for political parties taking sincere approach on such issues. The irony is that the politicians and their crony capitalists have the bulk of the black money which they liberally use during the elections when the Election Commission and other bodies remain helpless. The elections in the country have down-graded to battle of money-muscle power.
Reportedly Corruption in India is a major issue that adversely affects its economy. A study conducted by Transparency International in year 2005 found that more than 62% of Indians had firsthand experience of paying bribes or influence peddling to get jobs done in public offices successfully.In its study conducted in year 2008, Transparency International reports about 40% of Indians had firsthand experience of paying bribes or using a contact to get a job done in public office.In 2015, India was ranked 76th out of 175 countries in Transparency International's Corruption Perceptions Index, compared to its neighbors Bhutan (30th), Bangladesh (145th), Myanmar (156th), China (100th), Nepal (126th), Pakistan (126th) and Sri Lanka (85th). This is the second least corruption rank for India in the whole of South Asia.In 2013, India was ranked 94th out of 175 countries.In 2016, India was ranked 76th out of 168 countries in Transparency International's Corruption Perceptions Index
Black money in Indian elections: According to reported studies, the 2014 general election was the most expensive election in Indian history,reportedly with a massive Rs. 30,000 crores spent by the government, political parties and candidates. As numerous loopholes and lack of transparency mar the current election finance system in India, candidates and parties are able to raise and spend money without making any declarations as to the sources. There is a need to take comprehensive steps and corroborate financial information received for both parties and candidates from various sources, in order to ensure transparency and accountability in raising and spending money, says a report .It is evident that the current regulatory mechanisms are not enough to put a check on the growing influence of black money in elections. There is a need to take comprehensive steps and corroborate financial information received for both parties and candidates from various sources. In one of the steps taken by the Commission, it has made it mandatory for all candidates to list their movable and immovable assets in the affidavits submitted to the Commission. Even though the candidates declare their assets, the legitimacy of the declarations has always been under the scanner with no provision for information for sources of income and massive underreporting and undervaluing of assets being commonplace.
Reportedly The menace of black money cannot be curbed by the limited initiatives of the ECI alone. It is important that a detailed analysis is done on how the provisions of RPA can be made more harmonious with the other financial rules and regulations. This would include looking at the IT Act, the Wealth Tax Act, the Companies Act, the Foreign Exchange Management Act (FEMA), the Prevention of Money Laundering Act, Banking Regulations Act, and Cooperative Society laws and audit standards, so that hidden and illegal funds of parties and candidates can be tracked.