Main Savings Account
Main Savings Account in TOP Tax system
Usage of MSAs, SSAs and CANs:-
In the present economic system a person’s or a company’s money, movable or immovable properties(like vehicles, plots, flats, houses, factories, commercial establishments, lands etc.,) shares, family tree, insurance policies and all other assets are recorded, managed and handled by different departments, agencies or institutions.
But in the suggested TOP Tax system each individual above the age of 15 years will have one Main Savings Account consisting of five folders. Money, movable or immovable properties (like vehicles, plots, flats, houses, commercial establishments, lands etc.,) shares, family tree, insurance policies etc., are recorded, managed and handled in a single account called Main Savings Account (MSA) with five folders in case of individuals and in Corporate Account Numbers (CAN) with seven folders in case of companies which issued shares for public. These accounts namely, MSAs, SSAs and CANs will be maintained and operated by banks replacing different departments, tax collection and tax enforcement boards, agencies or institutions of the present economic system.
Thus people’s money, shares, all movable and immovable properties will be in only one account (MSA) with different folders operated by banks.
1. Usage of Main Savings Account (MSA) - There will be only one compulsory and mandatory MSA for each person given by the Government. This MSA will have five folders for each specific purpose of an individual.
The first folder (liquid money folder) will be used for storage and usage of money (in TOP Tax system it is called as liquid money) generated through savings/earnings/incomes/donations. This folder of MSA can also be used to run or operate any business or industry owned wholly by an individual.
The second folder (immovable property folder/Land Savings Account/LCA) shall be used for registration, storage and usage of ownership rights of all immovable properties like lands, flats, plots, commercial establishments, and etcetera. The ownership rights of these assets will be transferred from one person’s LSA to another person’s LSA while purchasing/selling/donating of these immovable properties.
Vivid explanation: - Land Savings Account/LCA In this suggested TOP Tax system the immovable property folder/ of each person shall be utilised as the de-mat account of that person’s ownership rights of immovable properties like lands, plots, flats, factories and other establishments. While purchasing or selling, the transfer of ownership rights of these assets/properties from one person to another person shall be made from one person’s LSA to another person’s LSA through banks/service centres in an electronic/digital form. So the transfer of assets like lands, plots, flats, structures and other establishments will take place in physical form upon the transfer of ownership right of that asset in digital form from one LSA (seller) to another LSA (buyer). TOP Tax system suggests that total land record of the country should be dematerialised according to extent, location, mapping and ownership. The land belongs to people will be recorded in their respective LSAs. Similarly the land that belongs to Government, Government organisations, companies should be recorded in their respective accounts. The
Repeat;- Under the TOP tax system the purchase of lands, plots, flats or other properties should be made through Land Savings Account (LCA), the second folder of Main Savings Account (MSA) operated by banks. If any person buys land, plot, flat or any other property anywhere in India the extent and nature of the property will be credited in his Land Savings Account and the same property will be debited from the seller’ Land Savings Account (LSA). Whenever he/she sells any property that is credited in his LSA, the same will be debited from his/her Land Savings Account and the same property will be credited in the buyer’s Land Savings Account (LSA). The credit in the LSA means purchase of immovable property and debit means selling of immovable property. The immovable properties will be in dematerialised form and the ownership rights can be transferred from one account to another account just like money transfers and shares. Just like shares there will be no paper documents for properties. Unlike cash transfers the buyer’s presence and signature/authentication shall also be needed for any movable or immovable property transaction. A bank statement of the second folder (LSA) of any person’s Main Savings Account will hold the entire ownership rights of that person’s all immovable properties. The People can get these bank statements of their properties at any time at banks in addition to weekly, monthly or yearly statements by post or e-mails or both. They will get phone messages and email statements immediately after each property transfer.
There will be no multiple selling of the same property to different people and unauthorised selling/purchase and illegal occupation of other person’s property without his/her knowing/consent will not be possible.
Advantages of Land Savings Account:-
1. Land ceiling act
In the present system rich people are having huge tracts of agriculture lands in different districts and States making mockery of the land ceiling act. The registrations of lands, flats, plots and other properties are being made by the registration departments and land records are maintained by revenue departments.
In the TOP Tax system land ceiling act can be strictly enforced on individuals and no individual can have more than 20 acres of land in the entire country. Every individual will have only one Main Savings Account consisting of separate folder called Land Savings Account for all immovable properties like lands, plots, flats, etc., All immovable properties, situated wherever in the country, along with all details of Survey numbers, boundaries, description, nature, map, geo location, village, district, state, extent and date of selling/buying of each property of each person will be recorded and maintained in Land Savings Account (LCA).
The Land Savings Account will be operated and maintained by banks just like money savings accounts. Debits and Credits of all properties will be made in the Land Savings Account while a person buys or sells his property. The total extent of land recorded in all Land Savings Accounts belonging to people, Governments, departments, organisations, companies, institutions etc., will remain exactly the same even after countless number of debits and credits each day. The Land Savings Account will show an individual’s exact ownership rights of his/her all immovable properties. The total land extent in each Land Savings Account will never cross the upper limit of 20 acres (as envisaged in TOP Tax system) strictly adhering to land ceiling act. There can be absolutely no multiple selling of same property to different people. It will become impossible for any individual to own huge extent of lands (beyond land ceiling act) under different names in different locations of the country. TOP Tax system ensures that the land ceiling act can be implemented in totality to perfection making Government’s task easier in pushing forward land reforms and allocating land to landless poor.
There will be no paper documents for all movable and immovable properties. Hence no separate registration and revenues departments are needed in the suggested TOP Tax system. Only land survey department would suffice to mark and clear boundary disputes.
2. Farm subsidies; - In present system 90% of total farm subsidies are being gobbled up by rich farmers (10%), while the small and marginal farmers (90%) are getting only 10% of total farm subsidies. This anomaly can be totally checked in TOP Tax system where Land Savings Account is a sub-folder of Main Savings Account operated by banks. According to records in Land Savings Accounts, the total farm subsidies (100%) would reach the small and marginal farmers while keeping away rich farmers from all subsidies. Here rich farmers means industrialists, contractors, professionals, celebrities, individuals, politicians, business class, salaried class (govt or private) etc., whose annual incomes are more than 2,00, 000 (other than agriculture income).
3. Farm loans; - In the present system getting farm loans by farmers is cumbersome, laborious, time consuming and bribery ridden exercise. Farmers need to go from one department to another department to get land documents, evaluation and encumbrance certificates, revenue certificates etc., after paying heavy bribes. Farmers are being forced to take loans from private lenders who charge high interest rates.
But Land Savings Account will make money borrowing by farmers from banks so much easy, instant, smooth, timely and time saving exercise. By using Land Savings Accounts the branch managers can sanction farm loans instantly based on land records in the LCAs.
4. Interest rates on farm loans
In the suggested TOP Tax system the interest rates on farm loans, up to Rs.10, 000, 00, will be only 2% per annum and 4% per annum beyond Rs. 10,000,00.
5. Land acquisition and compensation;- If an individual or company acquires land of more than 20 acres of land for industry, studios, real estate or any other purpose, land tax of 10,000 per acre per annum needs to be levied. If land is acquired for SEZs the farmers should be paid not only the market price of the land but also Rs 1,000 per acre per month for rest of his/her life and thereafter to his/her legal heir. It is easier for local panchayats, municipalities, corporation to collect house tax, vacant plot/land tax and properties tax as all the details of a person’s properties are recorded in his/her Land Savings Account (LSA).
6. Land transfer/registration/stamp duty;- Under the “TOP Tax system” there will be no stamp duties on all immovable properties The registration charges for purchasing any property i.e. land, plot, flat, house or other commercial establishments will be same and equal all over India irrespective of the place and market value of property. The registration charges would be only Rs. 1,000 per acre, Rs. 1,000 per 300 square yards of plot or Rs 1,000 per 1000 square feet of flat and multiples thereof. These registrations of land transfers can be made in any bank and anywhere in India. It is needless that the loss of stamp duties would be compensated by the “TOP Tax” which is compulsory on any money transfers. If a person buys a property (land, plot, flat, house, commercial establishment) for Rs. 10 lakhs, a TOP tax of Rs. 40,000 will be deducted from his MSA or SSA while transferring the cash to the sellers account. If he/she buys the same property for Rs. 1 crore the deducted TOP tax will be Rs. 4 lakhs. In the case a person transfers a property as a gift to his/her son/daughter or any other person, trust or organisation the TOP tax deducted will be nil as there is no cash transfer made. That means there will be no need for separate registration and revenue departments for registrations and handling of all immovable properties.
The third folder (movable property folder) shall be utilised for ownership rights of all movable properties like vehicles, gold, jewellery, and etcetera. The ownership rights of these properties will be transferred from one person’s MSA (manufacturer, dealer, and seller) to another person’s MSA while purchase/sale/donation of these movable properties. The ownership records will contain the vehicle’s model, manufacturing date, engine number, chassis number, registration number, fitness certificate etc. The ownership rights of all vehicles will be transferred from one MSA belonging to manufacturer/importer/dealer/retailer, or other citizen to the buyer’s account through online just like money transfers in the present system. In the TOP Tax system people will not need to have separate vehicle registration certificates, fitness certificates, and insurance certificates for each vehicle he/she owns. The bank statement of the third folder of his/her MSA, which contains the owning record of all his/her vehicles, will suffice for all his/her vehicles. That means the bank statement of the third folder (LSA) of any person’s Main Savings Account will hold the entire ownership rights of that person’s all movable properties. Furthermore there will be no need to have separate RTO departments for registration and checking of vehicles in the TOP Tax system. The traffic police department will suffice to oversee all vehicles in promptly paying the road taxes and insurance premiums regularly. The data on payment of road taxes collected from banks will ensure that the checking authorities can stop only the non tax- paying vehicles leaving the tax paid vehicles unstopped on the highways.
Similarly the gold in the entire country, owned by people, importers, dealers, sellers, Governments, temples, companies, organisations, will be recorded in the third folder(movable property folder) of each Main Savings Account. Upon the launching of TOP Tax system people should register the gold they own in their third folder of their Main Savings Account within the stipulated time period of one month or more or as decided by the Government. After this stipulated time period no individual will be allowed to register his/her gold. From hereafter when one person buys gold the ownership rights of the seller (importer/dealer/retailer, or other citizen) will be transferred from his/her MSA to the buyer’s account through online just like money transfers in the present system. So the ownership rights of gold will be transferred from one Main Savings Account to another account (importer, dealer, seller or between people) on each purchase or selling of gold. Gold loans will be given on the records of an individual’s gold owning in his/her Main Savings Account (third folder) and gold’s physical mortgage. It will not be possible either to mortgage or sell gold without owning record in his/ her MSA. That means there will be no possibility of stealing gold because the thief cannot sell the stolen gold without the owning record in his/her account. A person cannot complain the theft of his/her gold more than the recorded gold in his/her account. Similarly when law enforcement agencies raid a person’s house and find gold beyond the recorded gold in his/her account it will be deemed as either stolen or bought from illegal means. People, who bring gold from abroad on return, should record it in their Main Savings Account at the airport itself. The exact gold reserve owned either by people or Governments will be known at any time. Every year the imported and locally produced gold will be added to these reserves.
The fourth folder (shares/stocks folder) shall be utilised for storage and usage of ownership rights of shares/stocks, bonds, derivatives etc. The ownership rights of these securities will be transferred from one person’s MSA to another person’s MSA while buying/selling/donation. The shares will have only ownership rights and called as semi solid money.
The fifth folder (family folder) shall be utilised for family details and called as family folder. Marriage registration and child birth registrations will be made both in husband and wife’s family folders of MSAs. Based on the details in the family folders, monthly rations will be computed and transferred every month, in the form of cash, directly into the wife’s MSAs. Every child will get his/her own MSA account at the age of 15 years. The bank statement of The fifth folder (family folder) of MSA of any individual can be utilised as caste and income certificate, voter list, ration card and passport. It can be obtained within minutes from any bank and from anywhere in the country. People need not pay bribes to get these certificates or documents from revenue department and passport offices. All funds allocated towards welfare of SCs, STs and BCs can be transferred directly into the MSAs of these sections leaving no room for leakages, bribes and misappropriation of these funds.
Vivid explanation:- All the details of a person’s occupation, educational qualifications, marriage, driving license, passport, his/her life partners name, PAN number (MSA) (and vice versa), children and their age etc, will be recorded in the fifth folder(family folder) of his/her Main Savings account. The parents should register their child’s details in the data record of their Main Savings Account (MSA) within three months of their child’s birth. Once the child gets the age of 15 years he/she will automatically get PAN and MSA. The total care and welfare of the orphans should be taken by the State governments till the child reaches the age of 20 years. The pathetic plight of street children and orphans will come to an end once the TOP Tax system becomes operational.
This system totally and permanently checks the ever increasing problem of illegal migration from Pakistan and Bangladesh changing the demographic proportion of India to an unimaginable level. Once all the citizens above the age of 15 years are given the mandatory Main Savings account (MSA) and the TOP Tax system becomes fully operational, no adult will be given Main Savings Account (MSA) thereafter. From hereafter every additional Main Savings Account MSA will be an offshoot of an existing MSA belonging to parents. There will be no question of additional fresh MSA without parent’s existing MSA. Similarly existing MSAs will come to cease upon the death of individuals. All the money, shares, movable and immovable properties recorded in the five folders of MSA of the deceased person will be transferred to his/her legal heirs. The total number of MSAs will increase every year depending upon the growth rate of population of that country. TOP Tax system will record; maintain every individual’s family record generation after generation. Therefore illegal migrants from other countries cannot enter illegally into India, get Main Savings Account or Sub Savings Accounts and assimilate in Indian population. It will be a lot easier for the government to detect terrorists and militants who cross over from across the border to indulge in unlawful activities.
Preparation of voter lists- TOP Tax system makes the preparation of electoral roles to be very easy and simple and instant. Fresh voter lists will be provided by banks at any time if asked by election commission. According to the addresses recorded in the Main Savings Account the area wise voter lists can be supplied by banks to conduct polls to panchayats, cities, districts, MLA, MP and all other polls. If by polls are to be held, the last voter lists should be used in that particular constituency in order to stop people from other areas to change their addresses to that by poll areas.
TOP tax system will be operated solely by banks to provide different services for the Government like taxation, tax collection, tax enforcement; for issuing caste certificates, income certificates, voter lists, monthly rations, subsidies, pensions, calamity relief funds, passports, licences, fees reimbursements, scholarships etc., at absolutely free of cost. TOP Tax system, operated by banks, will also help people in getting all the above mentioned services at single window through their MSAs with five different folders. That means TOP Tax system will replace present system’s multiple departments like Income tax department, Central Excise department, CBDT, CBEC, Tax tribunals, passport department, census department, States’ commercial tax departments, civil supplies departments, registration departments, revenue departments etc., saving thousands of crores of Government’s non-plan expenditure.
2. Usage of Sub Savings Account (SSA):- Every person can open and operate as much number of SSAs as he/she wishes. The SSA will have only one folder called as liquid money folder. This folder shall be used for receiving, storage and usage of money to operate any business or industry wholly owned by an individual.
3. Usage of Corporate Account Number (CAN): -
Corporate companies, MNCs and Public limited companies which sold/issued shares to the public will be given CANs. Each Corporate Account Number will have seven folders for each specific operating/running purpose of the company.
The first folder shall be utilised for receiving, storage and usage of money for running of that company.
The second folder shall be utilised for having all records of immovable properties like land, buildings, infrastructure and etcetera of that project/plant/business.
The third folder shall be used for registration, storage and usage of ownership rights for all fleet of vehicles and other movable properties like machinery etcetera required for running of that company.
The fourth folder shall be used for storage of all shares of the promoters and the public of that company.
The fifth folder shall contain the details and accounts of all the employed manpower of that company.
The sixth folder shall contain the detailed accounts of all raw materials and other required inputs bought and used for running of that company.
The seventh folder shall contain the details and accounts of all products manufactured, sales and inventory. TOP Tax system’s CAN with seven folders is a new procedure to see that company’s financial books were clean, accurate, open and transparent to all share holders so that there can be no room for fraudulent and deceptive financial statements.
Vivid explanation: - The TOP Tax system’s Corporate Account Numbers (CANs) with seven folders will make all companies’ accounts fully transparent and open to all share holders every day (unlike quarterly, half-year and yearly statements released by the companies in the present system) for inspection, study and analysis before investing their hard earned money in shares of those companies with sound financial position.
Money will flow into the first folder of Corporate Account Number (CAN) when products are sold and money will go out when payments are made towards salaries, purchase of raw materials, services, equipment etc,. The seventh folder, which records the manufactured products, gets updated online at every stage of production and marketing just like money savings account. The depletion of stock in the seventh folder (products folder) means the increase of money in the money folder (first folder) on the selling of products. Similarly the decrease of raw materials in the sixth folder means an increase of finished products in the seventh folder. The increase of raw materials in the sixth folder points to depletion of money in the money folder (first folder) on purchase of raw materials. All these seven folders get updated online at every stage of construction, production and marketing showing the exact details of debits and credits relating to money, raw materials, finished products, borrowings, shares, etc., for the benefit of all investors who put their hard earned money into these companies. The total money, the value of raw materials, finished products, machinery, movable and immovable properties recorded in the seven folders of any Corporate Account Number (CAN) minus the borrowings is equal to the total strength of that company.
The TOP Tax system’s transparent accounting system in Corporate Account Number (CAN) with seven separate folders for money, movable property, immovable property, manpower, shares, raw materials and other inputs, and manufactured products and inventory will remove all frauds in accounting, securities, stocks and investment. These CANs with seven folders ensure that there will be no chance of fraudulent business practices of overstating profits, concealing debts, spreading the expenses out over several years, under voicing or over voicing of raw materials, inputs, and manufactured products, under or over stating of stocks, padding up of project cost and diverting of funds at grounding, construction, erection and all stages of project implementation and publication of falsified financial reports. The CANs of TOP Tax system can also check the diversion of funds from one company to another company within the group companies (same promoters). The TOP tax system gives a big boost to stock markets as people start buying huge lots of shares to maintain minimum balance in their accounts in order to avoid Profit tax. There will be no significant effect of TOP tax system on intraday trading and Future options trading because the looser looses extra 4% of the loss amount only in the intraday trading. People will prefer to buy shares on the long term and annual yield basis. They invest in the companies which give handsome dividends year after year.
Thus a country’s exact worth of all its money, movable and immovable properties, shares, gold, ores and minerals will be known exactly at any given point of time.
TOP Tax system insists that the entire natural resources of any country should belong to people of that country. The total known reserves of all natural resources should be recorded dematerialise form in Government accounts. The Government should sell ores or minerals to mining companies at reasonable price in terms of quantity or tonnes instead of leasing out mines in terms of extent or acres. Every tonne of ore or mineral mined should be paid by mining companies. The mining company which offers the highest price per tonne should be given the licence to mine after paying advance payment for the quantity it wants to mine. All the mining companies should buy ore or minerals from Governments before start of mining. The bought ore or mineral will be in dematerialised form and transferred from Government account to mining companies’ CAN. Every tonne of mined ore or mineral will be accounted and transferred from one account to another account i.e., from miner’s account to user’s or exporter’s account. The quantity of ores or mineral recorded in the Corporate Account Numbers (CAN) gets depleted when used in the production process or when exported. The stocks get increased when bought from mining companies or Governments. When a mining company sells or exports the mined ore or mineral to any other company the transfer of rights of bought ore or mineral will be made online from the mining company’s CAN (sixth folder) to the buyer’s CAN. At the same time money will be transferred from buying company’s CAN to mining company’s CAN. After the depletion of the recorded bought stocks in the CAN, the mining company will have to buy fresh stocks from the Governments and replenish its sixth folder. That means the buying and selling of natural resources will be made both in physical form and dematerialised form. TOP Tax system makes it impossible for any mining company to illegally mine huge amounts of ore or minerals without paying correct price. TOP Tax system makes it possible to know the exact quantity of ores or minerals mined, exported or used by domestic companies. Read full article from...
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Posted by VIJAYA KRUSHNA VARMA
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