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I do not want to elaborate about the creation, source and utilization of “Black money” as the reasons and the purposes are well known. Earlier attempts by the Government through voluntary disclosure schemes have not brought desired results as many people are averse to facing tax men.

My intention is to unearth the money as well as to make the people comfortable in their disclosure. No person is without tension in safeguarding the money earned through dubious means and 60 to 75% of the people may be ready to disclose provided if it is simple and easier to do it.

I am suggesting that the Central Government if it deems fit can issue bearer bonds with the caption “India Infrastructure Development (bearer) bonds”

The said bearer bonds may be issued in three popular currencies namely US dollar, Euro and in Indian Rupees.

Modality of the Scheme is as follows:

Name: “India Infrastructure Development bearer bonds” “IIDBB”

Currencies: US $, Euro & INR


- INR 1,00,000 each bond

- US$ 1000 each bond

- Euro 1000 each bond

Type of bond: Bearer bond

Lock-in-Period: 5 years

Rate of Interest: nil for the first 4 years (to compensate the loss of the direct tax Revenue)

5th year: 5.0% tax free

6th year: 6.0% tax free

7th year to 10th - 6.5% tax free

Bond Id: Alpha numeric code

Immunity: from Taxation – Direct / in-direct

Issue: Open ended


1. 6th year 20%

2. 7th year 20%

3. 8th year 20%

4. 9th year 20%

5. 10th year 20%

A Central server may be established for this purpose and all the Banks and nominated branches of various banks can be connected throughout India and other selected foreign locations.

Apart from Banks selected Post offices can also be linked to have all India presence.

Amount can be collected across the table without questions and bonds can be issued right across the table using a special format with “Bar” codes with bond serial number, type of currency, denomination and the number of bonds.


These bonds can be issued in D-Mat or in physical mode at the option of the subscriber.

For Payment of Interest and for redemption, the subscriber shall be asked to furnish their bank account number and IFSC code with their unique Bond id: OR Coupons to get the Interest and redemption amount across the counter or coupons can be issued

Other concessions:

1. Government and Public Sector undertakings may be allowed to accept bearer bonds for EMD and Security deposits for participating tenders.

2. Banks may be allowed to take the bonds as collateral security for lending

3. Other features can also be added to make the issue attractive, simple and safe for the subscriber.

There are many issues to be considered, but the suggestion is only a model that can be discussed and deliberated by the government.

In my opinion the government will get unimaginable amount, which can be used for big Infrastructure development that India needs immediately.

Instead of force, it allows voluntary participation and put the money to productive purposes.


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(Sole Prop)
Category Others   Report

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