India has seen different financial laws in the past & in the present too with many flaws & one such flaw does exist with the form no.:60 issued by the income tax dept. PAN number should be made mandatory to every individual citizen & the organizations by defining proper taxation slabs. With the advent of digital technology it has currently become necessary to synchronize all records related to the digital & the physical currency throughout the country on real time basis introducing some new techniques.
How to manage the INR(s) moving as loose currency in the pockets of people (resident Indians, NRI s visiting INDIA , the foreign nationals arriving in INDIA & those going abroad) ?
Every INR should be uniquely identifiable by the dedicated contrivances channelized on the dedicated network in contrast with the mint server ensuring a highly dedicated protocol HSM (highest secure mode to be defined over INDIA within a predefined arbitrary span) incorporating over a suitable multiuser operating system so that illegal device intervention could be properly prevented over the aforesaid network. Every DR / CR transaction should get recorded in the concerned accounts with unique references w.r.to the transaction makers (directly or indirectly). There should be dedicated toll free contact numbers of all types of services 24 x 7 & upon making a call to such IVR from mobile or LL, people should come with the ordered article or service at your doorstep & the spot from where the call is being made with the use of compass. These servicemen would be 100% govt. employees & amongst them women would not be allowed to work in the night shift. Now to place an order to bring something, one has to dial the concerned toll free number & input the area pincode after having given the desired requirement. A unique order no. should get generated & be messaged to the caller if the call is being made from a mobile number & in the case of LL, the said order number should get conveyed over the phone instantaneously. The said services should be catered within 10 – 20 minutes. Suppose that a sum of INR 1000/- is getting paid digitally by ‘A’ to ‘B’ through the payment device then the system should get connected with the corresponding bank or institution upon invoking the correct option thence completing the transaction after getting consent from both the payee & the receiver (working on behalf of govt. of INDIA). Every digital & physical payments should be processed through dedicated & registered contrivances such that the first type of payment should be uniquely identifiable as DR<PAN No. of person ‘A’+last 6 digits of UID of person ‘A’> with unique references upon accepting consent (payment) by person ‘B’ as receiver. A paper slip would be generated in this regard. Similarly, in the case of cash ,said currency should be scrolled through dedicated contrivances to validate the genuinity first & then CR followed by DR would be processed upon the PAN & UID of person ‘A’ dividing the considered INR by the number of CR permissible accounts with same references. This in turn would trace how many CR permissible accounts are there for the concerned PAN & UID of the person ‘A’. In this case ,the type of payment should be uniquely identifiable as CCR<1st 3 digits of the UID of the person ‘A’+last 3 digits of UID of person ‘A’+PAN No. of the person ‘A’> in the printed slip with some special unique code upon accepting consent (payment) by person ‘B’ responsible as receiver. CCR to be defined as cash credit ref. for loose INR that is getting used for making payments. This type of payment would be carried out with debit entries changed prefixed with CDR in all the credit permissible accounts to ensure the proper trial balance.
With the concept analogous to filling up of several tanks with different colours & considering one such tank identifiable as INR, it is to be meticulously examined exactly what is to take place (i.e., the phenomenon) in the field of economy when a person arrives from abroad & vice versa.
Let me consider the case of five people arriving from five different places in the world (viz., Australia, Russia, Germany,China, Holland). It means that five types of currencies are getting exchanged at the respective port or air port in INDIA. Suppose at any instance of time INDIA’s financial strength is INR 10 thousand billion. Now every day the international currency rates do move up or down due to certain factors & sub-factors which do affect economy & one such inevitable factor lies with the extraction of some significant natural resources like crude oil, natural gas & the intellectual property. One more significant factor in this regard unifiedly lies with the population, birth rate, govt. subsidy, job availability & demand. INDIA is counted amongst developing nations in the world whereas aforesaid nations are counted amongst developed nations. In any developed nation, per capita income (approx. average rate of income of every individual citizen having voting right) is higher as compared to a developing nation. If you consider that INR vs AUD (i.e., Australian $) such that today’s currency rate is less by INR 20 as compared to yesterday then it is said that an appreciation of INR value has occurred eventually resulting lower commodity price & services depending upon certain octroi (area specific). Here comes the concept of FOREX (foreign currency) . Similarly by considering the case of RUBEL vs INR & say that INR 75=1 RUBEL & suppose that today’s INR value in terms of count is higher as compared to yesterday’s rate by INR 10. This clearly implies a clean depreciation of INR value. This is how currency strength is examined & studied amongst the developed & the developing NATIONS.
Suppose that a foreigner is arriving in INDIA & furnishing his / her relevant documents with the respective currency partly in the physical & partly in the electronic format to the concerned authorities. Then due to the input of said foreign currency (digital & physical) , gold (Au) & platinum (Pt), the INR in the physical format goes up or down in terms of counted denominations & amount. Owing to the said fact the aforesaid person should be provided with a unique reference no. identifying his / her currency in the INR with the details of the person associating his / her eye retina scan, all fingers (both hands) scan & palm scan. In this way every transaction (DR / CR) would go through proper scanning & validation. Every DR / CR transaction would be processed upon giving consent in this regard by live finger scan only. Mobile banking should be stopped throughout INDIA. INR (physical paper currency) should be defined in such a way that no actual code should get displayed , rather such codes should be retained with the mint server with the unique sandwitch references (detectable by registered contrivances over the relevant network) only. Everyone is not a banker or a person associated with any financial institution. Hence saying someone or group about how to check any paper currency (INR) should be stopped. This in turn would stop malpractices with INR. Every foreign investment in INDIA should be made through respective embassies only ensuring prevention of criminal investments.
Now, let me consider the case when a person (citizen, NRI or foreigner) is going abroad (say gulf countries, his / her currency in the INR should be converted accordingly & the currency (INR) that is getting exchanged should be dropped & destroyed (burnt) with unique references retained with the mint server so that if in the future any particular INR denominations are required to relflect the drop in the currency value (INR) the same could be autogenerated with new sandwitch data references to meet the requirement. Further if some jewellery is going out (weared or unweared) that is to be valued accordingly & the said amount should be dropped from the total currency (INR) balance ,destroying the physical currency equivalently (keeping it’s references with the mint server).
Proposed Taxation System
The tax in any country refers to payment towards the concerned govt. in association with the commodity & services depending upon certain octroi(s) ,i.e. the set of tax rules brought into a town upon goods & services. How much every individual is earning should get calculated automatically at the end of each quarter & depending upon the defined tax slab forms should be taken up by the system , data should be fetched accordingly keeping track of PAN & UID from everywhere & submitted.
Depending upon some stipulated conditions defined over the aforesaid taxation system, let me consider a case where a person spends a total sum of INR 80,000/- , splitted as medicine & hospital bill INR 35,000/- (including tax INR 4,000/-), hotels & restaurants bill INR 18,000/- (including tax INR 7,000/-),travel bill INR 29,000/- (including tax INR 8,000/-),education bill INR 7000/- (100% tax free) & others bill INR 1,000/- (including tax INR 70/-). Then the system should take up the total average income of the person considered in last 3 years corresponding quarter(s) & see to it whether the income in the current quarter is good or bad. If the income in the current quarter is found bad & the said amount is below the per capita income, then the deficit amount should be returned back to the payee as tax returned in the form of NSC,INDIRA VIKASH YOJANA,KISAN VIKASH PATRA, LIC HEALTH POLICY, RURAL WOMEN & CHILD WELFARE FUND,SSI DEVELOPMENT BOND,RASHTRIYA SHAKSHARATA, SHIKSHA & SANSKRITY VIKASH BOND,CHILD LABOUR ABOLISHMENT BOND, SAINIK SAMBRIDDHI BOND, RESEARCH & DEVELOPMENT BOND, JANA SURAKSHA BOND ,PRAKRITY BACHAO BOND, YATAYAT VIKASH BOND, SANSADHAN VIKASH BOND, GYAN BRIDDHI BOND, CANCER, AIDS & THALASEMIA SAVOR BOND under GOI bonds such that loans can be availed from aforesaid tax returns but not before 3 years from the date of commencement of such bonds & to what extent loans can be santioned would be decided by the GOI (govt. of INDIA). Every gift should get registered in the name of the person (concerned with his / her PAN & UID) in the form of coupons which should get delivered with the acceptance consent by the person such that the said coupons do get redeemed only by the person (concerned) upon invoking the registered contrivance. At he end of each financial year (i.e., on the 31st March every year), total return (Q1+Q2+Q3+Q4) to be summed up & depending on the defined tax slab if it goes beyond 47% of total income, that should be returned back to the permissible accounts if the expenses include any medical bill (tax value only). Now a natural question that might come up in the mind of any individual person, how to calculate the tax part. Every payment (goods & services) should comprise of part A & part B such that part B be referenced as tax. No extra charges should be levied upon the tax payer. In the case of any loan, the said applied amount should get credited to the mentioned account as LCR <amount> after having due verification by the concerned bank officials & this loan to be applied vide dedicated & registered contrivances only. All programs (back end) should be done by foreign organisations from Russia, China, etc. excluding US, UK & ISLAMIC nations in their respective languages such that front end of the said programs do appear in Eng(US) ensuring a robust software built stopping injection coding & decoding. The country (concerned) should sign a treaty with the PMO (Prime Minister’s Office) such that no Indian citizen should touch the said system in any circumstances rather the embassy of the country (concerned for programming) operating in INDIA should be informed in any emergency to overcome the situation.
Mr. Avijit Gupta
(voter’s id: JVN3346145)