tweaker Posted November 9, 2016 Author Share Posted November 9, 2016 This is a great step for curbing black money (acquired legally but tax not paid) and dirty money (acquired through illegal source) in India. The move is so unexpected that people have no time at all to remove their black money and now this would become simply a waste of paper for them. I can’t imagine any better move than this to eliminate black money from the country. However, its immediate impact is likely to be very adverse on the stock market and the sectors like real estate where lot of black money is used. Its impact on the other sectors would be as following. The sale of gold and diamond jewellery would drastically decline. This means less foreign currency outgo and hence better balance of payment situation. Corruption would be reduced drastically. Credit card and other legal transactions would go up Taxes (Income Tax, Excise, Service tax and Sales Tax) would go up substantially since more transaction would be in white Criminal activities would reduce Use of illegal money in election would be reduced drastically Property rates would reduce drastically There would, however, be a lot of chaos in first few days. Then everything would fall in its place. Link to comment Share on other sites More sharing options...
tweaker Posted November 9, 2016 Author Share Posted November 9, 2016 Further Planning of modi gov. on this and issued internal guideline to banks and postoffices........ 1. If u deposit money in bank after 9th nov and cumulitive balance is >5 lakh than bank will put your account in suspicious list and can freeze your account untill income proof not provided with filed return copy. 2.PAN card update account will be shared with income tax department from where you can get a show cause notice of income and can ask reason for not filing return or less amount filing reason. velu and zen 2 Link to comment Share on other sites More sharing options...
Singh bling Posted November 9, 2016 Share Posted November 9, 2016 13 hours ago, laaloo said: But daily wage labourures hardly make more than 100 rupees a day. How will it impact them? Or do they make more than that? Labour rate for unskilled labour Rs.400 minimum , Mason 600 , painter 600 , These are gurgaon rates , heard that this is not much different from Delhi and Noida tweaker 1 Link to comment Share on other sites More sharing options...
tweaker Posted November 9, 2016 Author Share Posted November 9, 2016 State Bank of India said on Wednesday that its branches will remain open tomorrow with extended hours of work up till 6 pm. While most banks will remain closed tomorrow, the state lender has chosen to remain open tomorrow stating that they have enough of Rs 100 notes in their ATMs and bank branches. SBI said that there will be no limit on deposit of Rs 1,000 and Rs 500 into the customer accounts. Customers will be able to withdraw up to Rs 10,000 from banks tomorrow however their ATMs will become operational only from November 11. Further when the ATMs become active, customers would be able to withdraw upto Rs 2,000 per day. This announcement was made after PM Modi publicised the demonetisation of old Rs 500 and Rs 1,000 notes from midnight of November 8. Banks were instructed to remain closed on November 9 and November 10 after this announcement as new notes of Rs 2,000 and Rs 500 will be issued on November 11. PM Modi said that thereafter ATM withdrawals will be restricted to Rs 2,000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. Link to comment Share on other sites More sharing options...
tweaker Posted November 9, 2016 Author Share Posted November 9, 2016 Grey Anatomy A look at how cash deals hoodwink authorities by obscuring the trail of slush funds. Black money Black money is income not disclosed to the government to avoid paying taxes In cash we trust About two-thirds of India’s GDP run on cash—about Rs 88 lakh crore a year. For instance, grocery is bought and household services like carpentry etc are paid in cash. Black realty deals About a third of India’s black money transactions are believed to be in real estate, followed by manufacturing and shopping for gold and consumer goods. How the Dirt Gets Washed 1. Under invoicing Supply Firm Y Supplies goods worth Rs 1 lakh, but does not present the bill Billing Firm Y presents a bill of Rs 60,000 to firm X for the goods it supplied Cheque X presents a cheque of Rs 40,000 –after deducting Rs 20,000 as tax—to Y Due amount A month later X pays Rs 40,000 to Y in cash, which is not accounted 2.Investment in unlisted private companies Borrow X “lends” Rs 10 crore in “cash” to Firm Y through a convertible debenture Investment Firm Y uses the “cash” lent by X to pay vendors in cash Sell Firm Y accepts payment from its final consumers only in cheque Convert X “converts” Rs 10 crore he had lent into equity shares of Y 3.Property Deals Sell X sells a plot of land to Y at Rs 20 crore Pay Y pays 50 perent (Rs 10 crore ) in cash and the balance in cheque. Deposit X deposits the cheque of Rs 10 crore and withdraws part in cash Divert X Places a request before bank to for a demand draft ofa huge amount to purchase gold for business Hawala Hawala is an underground banking system based on trust whereby money can is available internationally without actually moving it or leaving a record of the transaction. Money laundering Money laundering is the process of concealing the source of illegally gotten money. Dirty money moves rapidly across border to obscure the audit trail, mostly using the hawala route. Stages of money laundering STAGE 1: Placement Separate the money from the source and place it in the financial system. Eg. making small cash deposits in a bank account. STAGE 2: LAYERING Create layers of transactions to disguise the origin and obscure the audit trail. E.g rapidly moving funds across different accounts. STAGE 3: INTEGRATION Reintroduce the funds in the legitimate financial system to enable further use. E.g Setting up front companies and using false invoicing. Recent real instances of black transactions · More than Rs 700 crore were transferred among 30 bank accounts in an inter-account transfer in a single day. · An individual deposited a cheque of more than Rs 14 crore in his dormant bank account claiming it be proceeds from sale of property. Part of this amount was withdrawn in cash and request placed before bank to for a demand draft of a huge amount to purchase gold for business. · A husband and wife paid insurance premium of over Rs 2.5 crore for 15 life insurance policies, out of which Rs 80 lakhs was paid in cash in multiple installments of less than Rs 50,000. zen 1 Link to comment Share on other sites More sharing options...
zen Posted November 9, 2016 Share Posted November 9, 2016 Rahul Gandhi - this is a conspiracy against Cong and other opposition parties as BJP did allow them the time to get rid of their black money Link to comment Share on other sites More sharing options...
tweaker Posted November 9, 2016 Author Share Posted November 9, 2016 Union Minister of Road Transport & Highways Nitin Gadkari said that toll taxes have been suspended across all National Highways till midnight of November 11. Link to comment Share on other sites More sharing options...
someone Posted November 9, 2016 Share Posted November 9, 2016 This positive move and yet, some reactions shows the mental inaptitude of some political parties. Namely AAP, CPM, TMC. For them, development is making sure hatred and fears remains. Even Bihar CM for all his problems, supported such move. sscomp32 and tweaker 2 Link to comment Share on other sites More sharing options...
beetle Posted November 9, 2016 Share Posted November 9, 2016 21 minutes ago, someone said: This positive move and yet, some reactions shows the mental inaptitude of some political parties. Namely AAP, CPM, TMC. For them, development is making sure hatred and fears remains. Even Bihar CM for all his problems, supported such move. Al their money and funding got erased in one day...what can we expect from them. With some states going for elections soon...this is a brilliant move.Lets see how these parties deal with only legal fundings. tweaker 1 Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 9, 2016 Share Posted November 9, 2016 Move challenged in the supreme court. Link to comment Share on other sites More sharing options...
jalebi_bhai Posted November 9, 2016 Share Posted November 9, 2016 6 minutes ago, Malcolm Merlyn said: Move challenged in the supreme court. By whom? Prashant Bhushan? Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 9, 2016 Share Posted November 9, 2016 17 minutes ago, jalebi_bhai said: By whom? Prashant Bhushan? Some UP lawyer.Petition also moved in the bombay HC. Link to comment Share on other sites More sharing options...
sscomp32 Posted November 9, 2016 Share Posted November 9, 2016 3 hours ago, someone said: This positive move and yet, some reactions shows the mental inaptitude of some political parties. Namely AAP, CPM, TMC. For them, development is making sure hatred and fears remains. Even Bihar CM for all his problems, supported such move. He was the only one to congratulate on surgical strikes too. Link to comment Share on other sites More sharing options...
tweaker Posted November 10, 2016 Author Share Posted November 10, 2016 If you have considerable amount of cash at home, there's no need to panic just yet, especially if it's hard-earned money and well accounted for. But now that the government has decided to do away with older notes (both Rs 500 and Rs 1,000), is there any way one can put it back into your bank account? Well yes, but to start with, keep your PAN card handy. Here's what the rules say: Depositing in a bank where you have an account The amount that can be deposited in one-go into the account depends on your KYC compliance with the bank. If the KYC is complete, there is no limit on the quantity and value of older notes that you can put into your account. However, in accounts where the compliance with KYC norms is incomplete, a maximum of Rs 50,000 can be deposited. Depositing in a bank where you don't have an account The older notes can be deposited into any new bank account in accordance with the standard banking procedure, with a valid ID proof. In both the above instances, the older notes can be deposited till Friday, December 30, 2016. Depositing in a third-party account The older notes can even be deposited into a third-party account. This, however, is subject to a specific authorisation by the account holder. Here also, one needs a valid ID proof. In case you don't have an account, you can even ask your relative, friend with an account to deposit cash into their account. In that case, the account holder (relative/friend) gives you the permission in writing. While exchanging, you should provide the bank with the evidence of permission given by the account holder and your valid ID proof. In case individuals are unable to deposit the cash-in-hand into the banks by December 30, an opportunity will be given to them to do so at specified offices of the Reserve Bank of India (RBI). They will be required to carry necessary documentations with them, as specified by the RBI. Conclusion The Income-Tax (I-T) Department will, in all likelihood, keep a track of such banking transactions, especially those happening from November 10, 2016. In case the I-T Department has any query, individuals with a proper and valid reason to explain the transactions need not worry. Accounts that have witnessed huge cash deposits and are not in sync with previous banking transactions, will, however, attract the attention of the I-T Department. Finance Minister Arun Jaitley has said that deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy any tax immunity and the land of law will apply on the source of such money. The transactions under the I-T lens already include cash deposits of Rs 10 lakh or more in a savings bank account. The sharing of data between the banks and the I-T Department will help the government in detecting any irregular banking operations. The government has reportedly issued orders to both the I-T Department and the banks to keep a track of all monetary transactions involving cash of Rs 2 lakh and above. Link to comment Share on other sites More sharing options...
BeautifulGame Posted November 10, 2016 Share Posted November 10, 2016 Move challenged in the supreme court. This is monetary policy decision.SC can't/won't interfere Link to comment Share on other sites More sharing options...
Malcolm Merlyn Posted November 10, 2016 Share Posted November 10, 2016 This is monetary policy decision.SC can't/won't interfere It can.As last demonetisation was through a legislation this isnt.So.... Link to comment Share on other sites More sharing options...
tweaker Posted November 10, 2016 Author Share Posted November 10, 2016 This led to a flurry of activity as people queued outside jewellery shops to buy gold. One can buy gold up to Rs 2 lakh in India without any identification. Reports came in that jewellers were accepting these illegal tenders well into Wednesday. This prompted the government to issue a stern warning to all erring jewellers. However, the biggest chunk of black money conversions are happening at dingy by-lanes of Chandni Chowk in old Delhi and Zaveri Bazaar in Mumbai, Business Standard reported. A money lender who wished not to be identified, said, "The rate has shot to 50%-60% yesterday." What this simply means is that anyone willing to covert their black money into legal tender of smaller denominations will get only 40% or 50% of their money and the rest will be the commission of these above mentioned agents. The Business Standard report also said that bankers were receiving calls offering flat 20% as a facilitation fee for exchanging old notes. Jewellers too made a killing by taking the risk of accepting illegal tender well after Government declared it unusable. Jewellers across cities accepted illegal tenders at a huge premium. Gold was being sold at 15%-20% premiums. The prices of the precious metal zoomed to Rs 34,000 per 10 grams in Ahmedabad on Wednesday. A jeweller at Zaveri bazaar said that they will continue accepting old notes of Rs 500 and Rs 1,000 and deposit them in the banks or exchange them for legal tenders, Business Standard report said. Link to comment Share on other sites More sharing options...
BeautifulGame Posted November 10, 2016 Share Posted November 10, 2016 Link to comment Share on other sites More sharing options...
tweaker Posted November 10, 2016 Author Share Posted November 10, 2016 It turns out, Anil Bokil, an Aurangabad-based Chartered Accountant had come up with this plan of banning 500 and 1000 rupee notes a long while ago. Bokil, a strong proponent of the theory of Artha Kranti, met with the PM in July this year to discuss some ideas to deter the accumulation of black money in the Indian economy. The appointment, which was stipulated to last for just 8 minutes, ended up being extended for 2 hours! Bokil strongly believed that by rendering high denomination currency useless will promptly deter the build up of black money. Bokil also believed that the move would hinder the circulation of fake currency in our economy. The ‘Artha Kranti Sansthan’, a group of crusaders who subscribe to the theory of ‘Artha Kranti’, have many such radical ideas that they would like implemented. For example, they want to completely scrap the current tax system in the country! Let’s hope we do see more such revolutionary ideas implemented. This one definitely seems to be working! Link to comment Share on other sites More sharing options...
rkt.india Posted November 10, 2016 Share Posted November 10, 2016 http://www.ndtv.com/india-news/sacks-full-of-burnt-500-and-1-000-rupee-notes-in-uttar-pradesh-1623440?site=full Link to comment Share on other sites More sharing options...
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