The White Paper suggests 4-pronged strategy to curb generation of black money which includes-
- More incentives for voluntary compliance of tax laws
- Reforms in vulnerable sectors of economy
- Creation of credible deterrence.
- Reforms in financial and real estate sectors would help in reducing generation of black money in long term as freeing of gold imports had helped in checking smuggling.
- Fast-track courts to seriously deal with financial offences and deterrent punishment for offenders
- More research to get to the reliable estimates of amount of black money and also sought the cooperation of the state governments in tackle the problem
- Provide tax incentives for encouraging use of debit and credit cards as these leave audit trails.
Black money in the real estate sector accounts for 11% of GDP. In order to curb this it suggests to:
- Develop a nationwide data base
- Introduce TDS on sale of property
- Set up electronic payment system
- The Lokpal Bill
- The Judicial Accountability Bill
- The Whistle Blowers Bill
- The Grievance Redressal Bill
- The Public Procurement Bill
Source : www.gktoday.in