Re: Amnesty by another name

[Sadanand Patwardhan]

>>to declare Rs 65,250 crore of black money. This is the largest amount declared as black money in the history of Indian taxation.<<

This is in NOMINAL RUPEES, which cannot be meaningfully compared to Rs 33,000 crore declared in 1997 without CONVERTING 2016 rupees to 1999 REAL rupee VALUE. If we take 7% as nominal interest rate per annum, then discounting factor works out to 3.6 for intervening 17 years and 65,250 crores become 18,125 crore in parity terms; less by 45% than 33,000 crore collected in 1999.
Not very flattering looks like to Arun Jaitley.

Sadanand

>>

The comparison of the 1997 and the 2016 schemes does not show the latter in a favourable light. This author estimates the current size of the black economy at 60 per cent of the GDP; at current prices, it would be Rs 90 lakh crore in 2016-17. Thus, what has been declared is roughly 0.7 per cent of the black income generated this year. The declarations under the 1997 scheme was roughly five per cent of the black income generated that year.

The Income Declaration Scheme has garnered only a minuscule amount of black money. The big fish have got away.

http://indianexpress.com/article/opinion/columns/amnesty-income-declaration-scheme-black-money-taxation-india-3067307/

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