ArthaKranti

ArthaKranti
A design towards Principled, Prosperous & Peaceful living
Hom
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5/11/17

ArthaKranti
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Presentation
Vision
Social Reality
Economic Reality
Current Reality Loops
Proposal
Effects of Proposal
Strategy
Social Security Scheme
Linked Proposals
Empowering Democracy
Animations
Credit
Establishment
Vision
Flawed Taxation
System
Economic
RealitySocial Reality
Appeal
FDI
Credit
Expansion
Local Industry
Credit Cycle
Farmers’ Suicides
Internal Borrowings
Banking System
Disinvestment
High Denomination
Currency
Proposed
System
Statistics
Calculations
Currency
Denomination
Bank Money Direct &
Indirect Taxes
Revenue
after BTTProposal
Anti-Social Industries
Commodity
Prices
Appeal
Terrorism Analysis Strategy
Future
Reality

ArthaKranti
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Vision
Vasudhaiv
Kutumbakam
One
Economy
Capital
Formation
Revenue for
Effective
Governance
Principled, Prosperous, Peaceful Living

ArthaKranti
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ArthaKranti
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Black
m
oney

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Effects of Fiscal Deficit on Local Industry
Fiscal Deficit
Poor
Infrastructure
Policies Influenced
by Foreign
Interests
Attract FDI Subsidies
Curbed
Uncompetitive
Local Industry /
Trade
Unemployment
Local Agriculture
Rendered
Uncompetitive
Reduced Rural
Purchasing
Power
Social
Insecurities

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Effects of Fiscal Deficit on Credit Cycle & Government Revenue
Fiscal
Deficit
Deficit
Budget
Inflation
Uncompetitive
Local Industry /
Trade
Unemployment
Hard
Credit
Policy
NPAs
Increase
GDP Growth
Slows Down
Conservativ
e Lending
Inadequate
Capital Supply to
Economy
Purchasing
Power
Reduced
Low Demand
/ Recession
Inadequate
Tax Revenue
to Govt.
Social
Insecurities

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Effects of Internal Borrowings on Fiscal Deficit
Fiscal
Deficit
Internal
Borrowings
Spent on Non-
Developmental
Activities
Inadequate Tax
Revenue to Govt.
GDP Growth
Slows Down

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Effects of Fiscal Policy & External Borrowings
on Credit Policy & Banking System
Fiscal
Deficit
External
Borrowings
National Policies
Influenced
Threat to Local
Banking System
Expensive
Capital
Lending Rates
Increase
Bank Interest
Rates
Increase
Tax Rebate + High
Interest Rates on
Savings

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Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social
Spending
Fiscal
Deficit
Pressure to
Disinvestment
Threat to
Organized
Employment
Social
Insecurities
Purchasing
Power Reduced
Govt. Control Lost in
Essential
Commodities [e.g.
Oil, Medicines etc.]
Severe Impact on
Weaker Sections
Scope for Market
ExploitationCost Burden
Passed onto
Common Man
Public - Private
Partnership
e.g. Toll
Reduced Social
Spending

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Effects of Fiscal Deficit on Anti-Social Industries
Fiscal
Deficit
Increased Congestion,
Accidents, Pollution
Social
Insecurities
Inadvertent Promotion of
Anti-Social Industries
Promotion of
State Run Lottery
Schemes
Increase in oil
Import Losses
(Subsidies)
Promoting Increased
use of Oil 
Automobiles
Lack of
infrastructure /
public amenities
(e.g. public transport
system)
Promotion of
Liquor, Gutkha,
Cigarettes
Direct Ill
Effects on
Public Health

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Effects on Taxation System & High Denomination Currency
Fiscal
Deficit
Inadequate Tax
Revenue to
Govt.
Tinkering of
Taxation System
Uncompetitive
Local Industry /
Trade
Expensive
Capital
Flawed Taxation
System
Inflation
Black
Money
Parallel
Economy
Poor
Governance
Social
Insecurities
Corruption
Non Traceable
Transactions
Ease of Cash
Transactions
Large
Denomination
Notes
Less Use
of Banking
System
GDP Growth
Slows Down
Inadequate
Capital
Supply to
Economy
Poor Credit /
Capital
Formation
High
Input
Costs
Tax
Evasion
Fiscal
Deficit
Excessive
Seigniorage
Hard Credit
Policy

ArthaKranti
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Effects of Fiscal Deficit on Credit Cycle & Farmers’
Suicides
Fiscal
Deficit
Deficit
Budget
Inflation
Hard
Credit
Policy
Social Unrest
Less Use of
Banking System
Poor Credit /
Capital Formation
Individual’s Credibility
NOT Established
Low Credit Supply
to Agriculture
Unjust Borrowings
from Private Sources
Farmers’
Suicides

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Flawed Taxation System
Narrow Base and Limited Coverage of Direct Taxation
Direct to Indirect Tax Ratio is 44:56
Inequitable and hence Regressive
Non-Productive
Uncertain
Inelastic
Uneconomical
Complex nature of taxes
Tax laws open for interpretation
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Statistics
How should it be… Show

ArthaKranti
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Currency Denomination
Country
Per Capita
Income
Highest
Denomination
Per Capita Income /
Highest Denomination
USA
UK
Japan
India
$ 53,000
25,000 £
50,00,000 ¥
Rs. 90,000
$ 100
50 £
10,000 ¥
Rs. 1,000
530
500
500
90
Currency Denomination Distribution

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Credit
Establishment
Less Use of
Banking System
Obstructs Credit
Registration of a
lot of Citizens in
the National
Economy

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Cash Transactions will not attract any tax
ArthaKranti Proposal
Withdrawal of Existing Taxation System Completely* (except Customs/Import Duties)
* All Central, State and Local Government Taxes – Direct and Indirect
Every Transaction routed through a bank will attract a certain deduction in appropriate
percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government Levels like
Central, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)
as the Bank has a key role to perform
Withdrawal of High Denomination Currency (say above Rs. 50)
Government should make legal provisions to restrict cash transactions up to a certain
limit (say Rs. 2,000)
This means, Cash Transactions above this limit will NOT enjoy any legal protection.

ArthaKranti
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Effects of ArthaKranti
Proposal
Bank Transaction Tax
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
Legal Provision Made
Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)
Existing Cash
Deposited in Banks &
Attracts BTT
High Value Cash
Transactions
Not Practical
Increase in
Banking
Transactions
Tax Revenue
Increases by Orders
of Magnitude
Adequate
Revenue to
Govt.
Adequate
Revenue to
Government
Show

ArthaKranti
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Proposal
Tax Collection is
Simplified
Opportunities
for Corruption
Eliminated
Black Money
Eliminated
Anti-Social and Anti-
National Elements
Effectively Checked
Fake Currency
Eliminated
National Elements
Effectively Checked
Adequate
Revenue to
Government
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

ArthaKranti
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Proposal
Increase in
Banking
Transactions
Part of BTT
goes to Banks
Net Banking
Revenue
Increases
Globally
Competitive
Interest Rates
Cheap and Easy
Capital
Purchasing
Power of
Society
Increased
Market Demand
Boosted
Industry Trade,
Supply
Stimulated
National Elements
Effectively Checked
Adequate
Revenue to
Government
Industry
Trade, Supply
Stimulated
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

ArthaKranti
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Proposal
Commodities and
Services are FREED
from Tax Influence
Prices
Drop
Focus Shifted to
Innovation from
Tax Manipulation
Industry Trade,
Supply
Stimulated
Cheap and Easy
Capital
Purchasing
Power of Society
Increases
Market Demand
Boosted
Anti-social and anti-
national elements
effectively checked
National Elements
Effectively Checked
Adequate
Revenue to
Government
Industry
Trade, Supply
Stimulated
Show
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

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Proposal
Black Money is
Converted into
White
Tax Revenue
Increases by Orders
of Magnitude
SLR
Revised
Money Supply
Regulated
Industry Trade,
Supply
Stimulated
Adequate
Revenue to
Govt.
National Elements
Effectively Checked
Adequate
Revenue to
Government
Industry
Trade, Supply
Stimulated
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

ArthaKranti
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Proposal
Adequate
Revenue to Govt.
Industry Trade,
Supply
Stimulated
National Elements
Effectively Checked
Fiscal
Deficit
Recovered
Govt. Debts
Checked
Empowered
Government
Appropriate
subsidies
Globally
Competent
Agro-Segment
Social
Security
Restored
Employment
Opportunities
Budgetary
Provision for
Political System
Cleansed
Political System
Black Money
Eliminated
Effective
Governance
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

ArthaKranti
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Revenue for
Banking
Cheap and
Easy Credit
Availability
Decentralized
Revenue
Collection System
Elimination of
Black Money
Social Security
Scheme
Tax Burden
Reduced with BTT
Budgetary
Provision for
Political
System
Elimination of
Means & Motives
for Corruption
Adequate
Revenue to run
Govt. Programs
EMPOWERED
INDIA
Creativity
FREED from Tax
Manipulation
Building
Individual’s
Credibility
Industry, Trade,
Supply
Stimulated
National Elements
Effectively Checked
Increased
Purchasing
Power
(Say 2%)
High Denomination
Currency is Removed
(Say above Rs. 50)
(Say Rs. 2000)
Existing Cash
Attracts BTT

ArthaKranti
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Jai Hind!

ArthaKranti
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Back

ArthaKranti
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BackDistribution of Central Government’s
Direct & Indirect Tax Revenues

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BackDistribution of State Governments’
Direct & Indirect Tax Revenues

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BackDistribution of Central & State Governments’
Combined Direct & Indirect Tax Revenues

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BackDistribution of Central & State Governments’
Combined Direct & Indirect Tax Revenues for the Year 2013-14

ArthaKranti
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Note: Absence of Denominations Larger Than $ 100 in U. S. and the fact that
considerable part of the U. S. Currency in $ 100 and $ 50 Bills is in use outside
U. S. it being an International Currency.
Comparison of Currency Denomination Distribution: Indian Rupee & U. S. Dollar
Back

ArthaKranti
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Banks
Primary
Deposits
Cash Reserves
Loans / Derivate
Deposits
Credit Expansion through Banking
System
A 20001 200 18002
B 1800 180 1620
C 1620 162 1458
D 1458 145 1313
E 1313 131 1182
Eventually 20,000 2000 18,0003
1 - Original Primary Deposit
2 - Original Excess Reserves
3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000

ArthaKranti
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Product
MFG
Cost
Taxes
Analysis of Commodity Prices
Cement
Bag
~ 84
Motor
Bike*1
~ 33,900 ~ 15,500
Petrol
(Delhi)
~ 50 / Liter
Back
All Figures in Indian Rupees
Sales Price
~ 270
~ 49,400
Sales Price
After AK BTT
~ 190
~ 34,600
~ 51
~ 51
~ 44 / Liter ~ 11 / Liter ~ 55 / Liter ~ 50
~ 17 / Liter ~ 61 / Liter ~ 50
Petrol
(Pune)
~ 50 / Liter
~ 23 / Liter ~ 73 / Liter
~ 30 / Liter ~ 80 / Liter
Diesel
(Delhi)
Diesel
(Pune)
~ 44 / Liter
~ 186
*1: Hero Honda Passion Plus, Pune

ArthaKranti
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Sample Calculations
Narrow Money (Transaction Money) (M1) = Currency Money + Demand Deposits
For Year 2015-2016:
Currency Money = 16,60,000
Demand Deposits = 10,00,000
Narrow Money (M1) = 26,60,000
Assuming 20 % of M1 to be active in Daily Bank Transactions,
Amount of Money in Daily Bank Transactions (D1) = 5,32,000
Amount of Money in Yearly Bank Transactions (Y1)
= D1*300 = 5,32,000 *300 (65 Days of Bank Holidays) = 15,96,00,000
Considering Bank Transaction Tax Rate as say 2 % with Shares of Central Government
= 0.7 %, State Government = 0.6 % and Local Government = 0.35 %
Combined Revenue for Centre (0.7 %) and States (0.6 %)
= Y1 * 1.3/100
= 15,96,00,000 * 0.013
= 20,74,800 = ~ 20,75,000
Revenue of Central Government (0.7 %) = ~ 11,17,000
Revenue of State Governments (0.6 %) = ~ 9,58,000
Revenue of Local Governments (0.35 %) = ~ 5,59,000
Revenue for Banks (0.35 %) = ~ 5,59,000
All Figures in Crore Rupees

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Dependency on FDI

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Dependency on FDI
India
China

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Back
All Figures in Crore Rupees

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ArthaKranti
Pratishthan
Advertising
Campaign
Public
Presentation
Media Tools
The Indian
Citizen
Business
Leaders
Political Leaders
& Parties
Experts
Members of
Parliament
The ArthaKranti
Doctrine
The Citizens
Charter of
Demand
The ArthaKranti
National Reform Bill
Implementation
Show ShowShow
Media
Show

ArthaKranti
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• Implementation of ArthaKranti proposal. Its Effects are
– Enough revenues with government to make legal provision of funds
for political system
– High valued cash transactions difficult
– Increase the use of the banking system
– Effective taxation system leading to eradication of black money.
• Provision for funding of the political system
– Funding of the political parties based on a per person amount for the
entire population for a five year period. Say Rs. 100/person
– Total population is to be considered while making this provision
– The actual fund availability will be in proportion to the actual voting
percentage
– This funding will be available only to Registered political parties
securing more than a certain minimum percentage of votes cast
Sample Calculation for funding political parties
• Giving healthy monthly allowances to the elected representatives
The proposal for allowance of elected representatives

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Calculations
• At the Central Level:
– Total provision for the entire population for the period of 5 years -
125 Crores * 100 (per Person Amount) = Rs. 12,500 Crores
– Provision per year – Rs. 2,500 Crores
• Actual funding will depend on the total percentage of votes cast
• The Total Amount available in proportion to a total valid percentage of
votes - Say 60 %
– Amount available for 5 year period = 12,500 * 60/100 = 7,500 Crores
– Amount available per year = 7,500/5 = 1,500 Crores
• At the State Level:
– State Population = say 10 Crores
– Funds’ Provision for 5 year period
= 10 Crores * Rs. 100 = Rs. 1,000 Crores
• At the Local Level:
– Population of an urban area = say 10 Lakh
– Funds’ Provision for 5 year period = 10 L * Rs. 100 = Rs. 10 Crores
Back

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Allowance for Elected Representatives
• For MPs at Rs 10 Lakh/month
• For MLAs at Rs 5 Lakh/month
• For Corporators at Rs. 1,00,000/month
• For Village Development Officer at Rs. 10,000/month
• The spending with these provisions will be
- At the Central Level -- 785*10L*12 = Rs. 942 Crores against a
projected revenue of ~ Rs. 8,00,000 Crores = ~ 0.12 % of the revenue
- At the State Level (e.g. Maharashtra) –
366*5L*12 = ~ Rs. 220 Crores against a projected revenue of
~ Rs. 1,00,000 Crores = 0.22 % of the revenue
- At the Local (Corporation) Level (e.g. Aurangabad) –
100*1,00,000*12 = Rs. 12 Crores against a revenue of ~ Rs. 250
Crores = 4.8 % of the revenue
Back

ArthaKranti
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Eradication
of Black
Money
Appropriate
remuneration for
elected representatives
at all levels
Legal provision of
funds for politics at all
levels
Provision of funding
for political parties
based on population
Effective funding available
for political parties depends
upon voting percentage
Funding to political
parties based on the
percentage of votes
won
Decreased dependence
on
corruption and criminals
Assured
clean
funding
Transparency
in politics
Dignity & public
trust restored
Politics
professionalized
as the qualified people
will take it up
Decreases ill-influence
of local parties
in national politics
Political parties
interested
in increasing voting
Politics focused on
real issues
and national interests
Increased
stability of
government
Improved
functioning and
decision making
Increased law
and order
Improved
governance
Empowering
democracy

ArthaKranti
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• A Social security identification (SSID) is issued to every Indian Citizen.
• To begin with the beneficiaries of the Social Security Allowance Scheme will be all
adult citizens of India beneath the poverty line.
• For every deserving adult, a fixed amount (linked to DA), Social Security
Allowance, is credited per month into a unique bank account linked to the SSID -
Say Rs. 2,000/ pm -- Based on Food (Rs. 900/-) + Shelter (Rs. 500/-) + Clothing
(Rs. 300/-) + Health (Rs. 300/-)
• Government will remove all non-merit subsidies thus freeing up revenue to pay
the Social Security Allowance to the deserving citizens
• All Social security allowance beneficiaries can get credit of Rs. 50,000/- (upper
limit) from banks
• Restrictions to ensure correct usage –
- No rights to SSA beneficiaries on income for hereditary property
- SSA amount can’t be used as security against any other loan
• Uniform implementation throughout the country
Social Security Proposal

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Social Security Proposal
Calculations
• In first phase, scheme will be implemented for people below poverty line
• Number of people below poverty line (monthly income below Rs. 300/-)
is 30 Crores
• Total monthly expenditure = Rs. 2,000 * 30 Crores = Rs. 60,000 Crores
• Total yearly expenditure = Rs. 60,000 Crores * 12 = Rs. 7,20,000 Crores
• Excluding current expenditure of Government over subsidies of - Rs.
1,50,000 Crores, additional yearly expenditure will be -
7,20,000 - 1,50,000 = Rs. 5,70,000 Crores
• Considering current national income of Rs. 40,00,000 Crores, this
additional expenditure would be ~ 15 % of national income

ArthaKranti
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SSA beneficiaries will
not have right on
income from hereditary
property
Bank account
for SSA
(associated
with SS Code)
SSA can’t be
used as
security for
any other loan
Unique SS
code for
every
citizen
Maximum Credit
Limit
For SSA beneficiaries
up to say, Rs. 50,000
Withdrawal of
Non-merit
subsidies
(Central and State)
Social Security Allowance
(Say Rs. 2,000 monthly)
(linked to DA)
(Food, clothing, shelter,
health insurance)
Saved Gov. Revenue
Expenditure
Effective
implementation
of child welfare
laws & schemes
Increase in
Purchasing
power of the
poor people
Increased
use of
Banking
system
Credit
available
to the poor
Credit / Capital
expansion
in the banking system
as a whole
Opportunities of
Corruption are
reduced (PDS, fuel
etc.)
Price
distortion
removed
Assured
dignified
existence for
every citizen
Hugely increased
demand
for goods and
services
(Necessities)
Establishment
of Individual
credibility
with bank
Increased Business
/ Employment
opportunities
locally
Farmers’
suicide
checked
Decreased Social
Unrest (reduced
Naxalism, terrorism,
extremism, etc.)
Balanced
Development
(Rural and
Urban)
Dissemination
of Population
Social
security
Market driven
quality supply
of goods &
services
Improved
quality of life

ArthaKranti
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Back
Government Officials
H.E. Smt. Pratibhatai Patil,
Hon. President of India
(Personal meeting twice)
Dr. Montek Singh Ahluwalia,
Deputy Chairman, Planning
Commission (Book)
Dr. Bhalchandra Mungekar,
Member, Planning Commission
(Presentation)
Dr. Parthasarathy Shome,
Ex-Chief Economic Advisor to
the Union Finance Minister
(Presentation North Block)
• Dr. Adarsh Kishore Saxena -
Ex-Union Finance Secretary (Presentation in the presence of Smt. Pratibhatai Patil)
• Mr. Johny Joseph -
Chief Secretary, Maharashtra (Presentation To CM, Maharashtra )
• Mr. Agarwal -
Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )
• Mr. Sangith Rao -
Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )

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Economists & Experts
Dr. D. R. Pendse Dr. Narendra Jadhav M N Chaini
• Chandrahas Deshpande
• Sunil Bhandare
• Jairaj Salgaonkar
• V. M. Govilkar
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P B Sawant
Justice – Supreme Court
R A Mashelkar

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Political
Leaders
Congress
Manmohan Singh,
Hon. Prime Minister
(Book)
P. Chidambaram
Union Finance Minister
(Book)
Sushil Kumar Shinde,
Union Power Minister
Pawan Kumar Bansal,
Minister of State for
Finance (Presentation)
Prithviraj Chavan
MOS, PMO’s Office
(Meeting)
Vilasrao Deshmukh,
CM, Maharashtra
(Presentation)
• V George
P.A. to Smt Sonia Gandhi (Presentation)
Back

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Political
Leaders
BJP
LK Advani Bhairon Singh
Shekhawat
Yashwant Sinha Arun Shourie Sushma Swaraj
Balbir Punj SS Ahluwalia Rajeev
Chandrashekhar
Nitin GadkariGopinath Munde
Sompal Shastri Vinay
Sahasrabuddhe
Sudheendra
Kulkarni
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Political
Leaders
Shiv Sena
Mohan Rawle Suresh Prabhu
Political leaders MNS
Raj Thackeray Rajan Shirodkar
• Shweta Paralkar
• Shishir Shinde
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Political
Leaders
NCP
Sharad Pawar Jayant Patil
Political leaders CPI
D Raja
• Dr. Kango
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Industrialists
Deepak Ghaisas
I-Flex solutions
Narayan Murthy
Infosys
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• Arvind Padhye – TCS Pune – Center Head

ArthaKranti
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Media Experts
Kumar Ketkar
Loksatta
Raju Parulekar
E TV
Prem Shankar Jha
Hindustan Times
• Rajeev Khandekar – Star TV
• Yamaji Malkar - Sakal
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ArthaKranti
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Creative Artists
Vijay Tendulkar Mangesh Tendulkar Sachin Pilgaonkar Ashok Saraf
Nina Kulkarni
Nivedita Saraf
Mohan Joshi Kiran Shantaram Atul Parchure Prashant Damle
Swapnil Bandodkar
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ArthaKranti
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Educational Institutions
• Goa Commerce College
• Osmania university
NGOs
• Loksatta
• Maitri
• i-Watch
• Prayas (Reli group)
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ArthaKranti
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Terrorism in India

ArthaKranti
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How we can tackle this problem?

ArthaKranti
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Poverty
Reduced
Social
Spending
Unemployment
Reduced
Purchasing
Power
Flawed Taxation System
Tax Evasion
Under-utilized
Banking
System
Inadequate
Money Supply
to Economy
Individual’s
Credibility not
Established
High Commodity
Prices due to Heavy
Indirect Taxes
Deprivation – from
Resources and Means
(Credit) to Acquire Them
No Access
to Credit
Lack of
Education &
Skills
Terrorism Analysis

ArthaKranti
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Loss of faith in peaceful, democratic process,
no hopes of getting ‘justice’ without resorting
to violence
Deprivation, Extreme
Disparity, Envy
Poverty
Social Oppression
(Communal / Religious /
Caste / Linguistic etc.)
Sense of Hurt, Damage to
Self Esteem, Indignation
Desperation Rebellious Tendency
Terrorism Analysis

ArthaKranti
Hom
e
Loss of faith in peaceful, democratic process, no hopes of getting ‘justice’ without resorting
to violence
Religious
Dogma
Terrorism
Perceived
Historical injustice
Political / Economic /
Philosophical ideology
Propaganda for masses,
Indoctrination of
individuals
Birth of a
militant
Public sympathy, Weak
national Character
Lack of clear and firm
Foreign (therefore,
Defense) policy
Physical constraints (Porous borders,
unregulated coastlines)
Parallel economy, Corruption, Fake /
high denomination currency
Logistic support, funding
and training etc from
hostile foreign
organizations / nations
Systemic Administrative
weaknesses in governance
and law enforcement

ArthaKranti
Hom
e
Withdrawal of High Denomination Currency (say above Rs. 50)
ArthaKranti Proposal
Withdrawal of existing Taxation System Completely (except Customs/Import Duties)
Every Transaction routed through a bank will attract a certain deduction in appropriate
percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government levels like
Central, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)
as the Bank has a key role to perform
Cash Transactions will not attract any tax
Government should make legal provisions to restrict cash transactions up to a certain
limit (say Rs. 2000)

ArthaKranti
Hom
e
Poverty
Reduced
social
spending
Unemployment
Reduced
purchasing
power
Flawed taxation system
Tax evasion
Under-utilized
banking
system
Inadequate
money supply
to economy
Individual’s
credibility
not
established
High commodity
prices due to heavy
indirect taxes
resources and means
(credit) to acquire them
No access
to credit
Lack of
education &
skills
Effects of Proposal
Adequate
revenue with
Government

ArthaKranti
Hom
e
Poverty
Unemployment
Reduced
purchasing
power
Flawed taxation system
Tax evasion
Under-utilized
banking
system
Inadequate
money supply
to economy
Individual’s
credibility
not
established
High commodity
prices due to heavy
indirect taxes
resources and means
No access
to credit
Effects of Proposal
No
Black
Money
Single point
taxation system

ArthaKranti
Hom
e
Poverty
Unemployment
Reduced
purchasing
power
Under-utilized
banking
system
Inadequate
money supply
to economy
Individual’s
credibility
not
established
resources and means
No access
to credit
Effects of Proposal
Banking
transactions
increased
Individuals
credibility
established

ArthaKranti
Hom
e
Poverty
Unemployment
Reduced
purchasing
power
resources and means
Effects of Proposal
Industry, trade,
supply
stimulated
Purchasing
power
increased
Cheap & easy
capital
Single point
taxation system
Individuals
credibility
established

ArthaKranti
Hom
e
Effects of proposal
Terrorism
Birth of a
militant
national Character
Foreign (therefore,
Defense) policy
hostile foreign
and law enforcement
Adequate
revenue with
Government
Individuals
credibility
established
Single point
taxation
system
No
Black
Money
Purchasing
power
increased
Poverty
Industry,
trade, supply
stimulated

ArthaKranti
Hom
e
Effects of Proposal
Terrorism
Birth of a
militant
national Character
Foreign (therefore,
Defense) policy
hostile foreign
and law enforcement
Adequate
revenue with
Government
Individuals
credibility
established
Single point
taxation
system
No
Black
Money
Purchasing
power
increased
Social
Security
Industry,
trade, supply
stimulated
Empowered
Government

ArthaKranti

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