In the Digital Age, Income Tax is not necessary. Digital transaction trails ensure perfect accountability. Transactions can also be instantly routed in such a way that the whole economic activity of the country can be mutually & simultaneously beneficial for the commercial transactors as well as the government. Without taxation, the industry will take a productivity leap (a wealth & job creator of world standards) and government can focus on policy, monitoring & public infrastructure. India can pioneer this, to regain its status as one of the wealthiest countries in the world.
The DR account is like a Wallet into which money can be added from the Bank accounts.
A simple explainer –
❖ In the Bharath BHIM system, financial transactions happen through BHIM multi-platform UPI based applications & cards (Web/Tablet/Phone/Debit/QR Cards).
❖ All Financial transactions happening in India that come under GST (all slabs including 0% GST) will be the core of the BHARATH BHIM system. Generally, all commercial transactions will fit into this.
❖ For all Commercial Transactions done through BHIM applications – (from buying things in small shops like chocolates, biscuits, bread, tea, coffee, provisions etc to making big multi-crore business transactions), both BUYER and SELLER will instantly receive 10% credit back into their BHIM accounts.
❖ The BHIM account is linked to Aadhaar for individuals and to the GSTN for businesses. The money stored in Banks can be accessed using the BHIM applications and transacted.
❖ The BHIM account will have a Digital Rupee (DR) account & a Digital Deposit (DD) account.
❖ The DR account is like a Wallet into which money can be added from the Bank accounts and the DD account is the Automated Tax Reversal & Credit Account into which Government credits go to.
❖ Daily day to day transactions are done through the DR account and the 10% credit for commercial transactions go into the DD account.
20% of all money transacted daily in India will be available to the Government for a full 1 year CREDIT PERIOD.
How can 10% credit be given for every commercial transaction done in the country?
● A uniform rate of 20% GST is proposed for all products but with an automated way to immediately return a credit value back to the BHIM accounts of the transactors.
● ANY transaction executed through BHIM will also automatically have TAX FREE status.
● A Seller sells an item with 20% GST and instantly receives back 10% as credit into his DD in the BHIM application. The Buyer who buys this item also instantly receives 10% credit into his DD.
● The 10% + 10% CREDIT that is now available in the DD accounts of the SELLER and BUYER is instantly, automatically & continuously available to the GOVERNMENT for a period of 1 YEAR.
● After 1 YEAR, the credit will be returned back as DIGITAL RUPEES to the SELLER & BUYER, for use within BHIM system and it automatically starts coming back into the DD accounts when they make further transactions and thus everything stays within a LOOP.
● So, Credit given to the TRANSACTORS for a 1 Year period is the Credit available to the Government for the 1 Year period.
● Any amount in the DD account CANNOT be used directly by the individual/company/farmer for the period of 1 year. It will show as CREDIT available to them for the 1 year period. They can also avail bank overdrafts on this amount.
● The entire amounts in all the DD accounts in India can be used by the Government, for that 1 year period.
● In addition to the credit returns, all transactions done on the BHIM platform will be TOTALLY TAX-FREE – Free from Personal Income Tax & Corporate Tax. This will ensure that the industry itself rushes to implement this system. The additional benefits possible are explained in the Detailed Presentation.
● In short ~ 20% is the GST for all products sold in India (instead of the current 0%, 5%, 12%,18% and 28% ), if the transactions are done through BHIM.
● When the product is sold through the BHIM system, both Seller & Buyer will each instantly receive an AUTOMATED credit of 10% of the transacted value.
● Since both receive uniform credit, BOTH will have an equal incentive to use the BHIM system to transact.
● Since BOTH enjoy a COMPLETE TAX-FREE STATUS on this BHIM transaction, it will definitely be their PREFERRED TRANSACTION MODE.
● Since there will also be no need for further GST filing on these transactions, as they are already clearly accountable, the industry will also take it up instantly + government will also automatically benefit.
● Thus, 20% of all money transacted daily in India will be available to the Government for a full 1 year CREDIT PERIOD.
● Due to COMPLETE TAX-FREE status & additional CREDIT benefits, it will be adopted all over India easily. Thus there is no need to TAX and avoid TAX.
● The unorganized, unaccountable sector will easily come into the system as they directly benefit out of every transaction and there is no tax to avoid and hence the entire Indian economy will become a formal economy.
● Individuals and businesses in India can not only function with TOTAL FINANCIAL FREEDOM but will also have transparency & accountability.
Index of the pdf Presentation
1-3 Introduction of concept
4-7 The components of Bharath BHIM
8-11 The transaction system
12-19 Explainer of 20% credit
20-22 General Benefits
23-24 Simplicity of Transactions
25- 4 Transactions explained
26-27 Transactions & benefits at a glance
28- DD – BANK OVERDRAFTS & Personal Loans
29-30 DD – NSE BHIM scrip
31- Sum up
32-33 Tax-Free Nation
34-38 Insurance for all
39-40 Promo Slides
41- Ease of doing Business
42- Better statistical Management
43- 5 Minutes to do business in India
44-46 Digital Proprietorship Registrations (DPR)
47-FDI through BHIM
48-Overseas Money remittance through BHIM
49-51 C-BHIM Stock & Sales Management
52-53 ZERO Minimum Balance Banking
54-56 Maintaining the BHIM system
61-INTERNET INFRASTRUCTURE FOR BHIM
62-64-PROPERTY REGISTRATION & Rental transactions through BHIM
65-66 Typical Basic Household expense payments through BHIM & gains
67-Annual Filings under BHIM
68-Applications around BHIM
69-72 India Investment Fund IIF
73-74 RF-Retirement Fund
1. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.