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500 & 1000 rs notes stopped from tonight

tweaker

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tweaker Grand Master

tweaker

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Here are 10 different types of people who will be worst affected by Modi’s black money surgical strike. We sincerely hope you’re not one of them!

 

1. Politicians

It’s no open secret that political parties and politicians will be massively hit by this move. Before elections when these parties used to bring in sacks full of black money to distribute in exchange for votes, the process was simple. But now the money stored for such purposes have lost their value overnight. How will they convert all that money into denominations when the bank accepts only limited currency for exchange? Truly screwed!

 

2. Land Mafia

Everyone knows that Indian real estate prices are overly inflated. Part of the problem has been black money which is used during transactions to show lower property value but actually higher prices leading to increased rent. This smart move by Mr. Narendra Modi will make land mafia run like their pants are on fire!

 

3. Movie Producers & Stars

As in any industry that deals with large sums of money, the movie industry has its use for black money. Black money is used for suppression of receipts from movies using ancillary sources, inflation of expenses and a huge amount of out-of-books payments/receipts and profits from the success of the movie go back into the system. It has been known that some movie stars get half payment via banks and rest is given as cash to avoid taxes. This whole practice can continue, but what about the money that is already in their lockers?

 

4. Hawala Dealers

Hawala is a popular and informal value transfer system based on the performance and honour of a huge network of money brokers. They are primarily used to send money from the country and most of their transactions are done through black money. India and middle-east can be called the hub of hawala transactions, but with the Rs.1000/500 notes ceasing to be valid currency many hawala dealers will be in deep trouble.

 

5. Fake Currency Dealers

Over the past many years thousands of crores worth fake currency has been printed and circulated in India. These fake notes have become so perfect that it was almost indistinguishable from real notes. As all Rs.1000/500 notes ceased to be legal tender, fake currency dealers will be hit hard!

 

6. Sports Betting

Sports betting is illegal in India yet a multi-crore business. These channels accept and use only black money as the business itself is illegal and payments are strictly cash.

 

7. Terrorist Organizations

Terrorist organizations need huge supply of money to operate in any geography. They rely on constant supply of black money from various sources to pay for weapons, personnel, and logistics. As of now, there must be crores worth notes with these organizations and come tomorrow, it has become worthless!

 

8. Fake Trusts and Charity

Although a noble cause, charity in India is misused to the core to avoid paying taxes. There are hundreds of thousands of fake trusts and charitable organizations that exist for the sole purpose of swindling money and converting black money into white. What will happen to their cash reserves will be interesting.

 

9. Rich Agricultural Land Owners

Agricultural income is a legal loophole through which huge amount of black money is converted into white. While the honest farmer tills the land and barely makes enough to feed his family rich agricultural land owners make a mockery out of the system and stash money away. There have been stories of extremely wealthy “farmers” giving direct support to political parties to acquire more land and continue their swindling.

 

10. Large Educational Institutions

Most educational institutions in India ask for donations which is usually paid as hard cash by parents. These institutions hardly provide any record for such transactions and there should be hundreds of crores worth currency in store and tomorrow all that money just became worthless.

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sandeep Grand Master

sandeep

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I'm wondering what the medium-term consequences of this are going to be.  Imagine you are a corrupt govt babu and you have bunch of crores stashed away.  Your 'white money' net worth could be a few lakhs, i.e. 5% of your total wealth or maybe even less.  Now in one shot, you are at risk of losing 95% of your assets.  Either you will somehow find a way to launder it at a loss, or you are going to end up massively poor, overnight.  There's going to be a lot of desperate people out there in the coming months.  

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someone Collaborator

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its unfortunate that some public dont get this move at all. If this is going to be successful, it is because of the surprise. So the lack of time, is essential to make this move work. Its a surgical strike afterall.

 

It will be interesting to see if BJP suffers some losses due to the short term inconvenience caused. So bold move by Modi even if affects their key voters, the small traders.

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tweaker Grand Master

tweaker

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Vadodara real estate developer paying 100 employees, most of them labourers, six months' salary in advance made news for his unexpected generosity. 

But what the developer, and many others like him have done is use an ingenious way to get rid of their black money following Tuesday's demonetisation of the Rs 500 and Rs 1,000 currency notes. 

"The salary was paid to all those who work for me in advance. Every employee was even given 2% more than their salary for their efforts," gloated the developer who told ET that he also hopes that his employees don't run away with the money. 

 

About 500 kilometres away in Mumbai, a shopkeeper who owns two well-known sari showrooms in the central part of the city, convinced his 25 employees to deposit a total of Rs 40 lakh in their bank accounts in the next few days. 


"The employees, many of whom don't even pay income tax, would deposit the money in their bank accounts. They would withdraw the money a month or two later and return it to the shopkeeper," a middleman who facilitated the deal, said. 

 

However, for both the developer and the shopkeeper the problem persists. They need to "dispose" a couple of crores in the coming month or the money would lose all value. This has led to the mushrooming of "operators" or middlemen across India who are charging anywhere around 10% to 30% commission for converting high denomination notes to smaller ones. 

 

Another popular route to dispose of the illicit cash is buying gold. Jewellers or middlemen who sell gold are charging anywhere around Rs 40,000 for 10 grams when the market rate was Rs 30,500 on Wednesday. "Whenever someone gets black money he is not going to just store it in his house, he will invest it or spend it. The problem is for those who held that money at 9 pm on Tuesday," said a Mumbai-based chartered accountant. 

 

According to people in the know, many hawala operators and real estate developers who hoarded their black money are now stuck with Rs 500 and Rs 1,000 currency notes. Most black money hoarders expected the government to de-monetise the Rs 1,000 note, but extending it to Rs 500 came as a shock. 

 

In some cases many of those who were left with the black money are turning to god, literally. Many people are going to the religious places and exchanging the Rs 500 and Rs 1,000 notes theu hold for Rs 100 notes.

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beetle Rising Star

beetle

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10 hours ago, tweaker said:

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. 

I-T department conducts surveys on jewellers, hawala operators accepting banned Rs 500, 1000 notes at 40% discount

HIGHLIGHTS

  1. The search and survey operations were conducted on jewellers at Dariba Kalan and Karol Bagh in Delhi besides Chandigarh, Ludhiana and Jalandhar
  2. Two big hawala operators have been targeted in Mumbai
  3.  
  1. http://timesofindia.indiatimes.com/india/I-T-raids-on-jewellers-hawala-operators-accepting-banned-Rs-500-1000-notes-at-40-discount/articleshow/55355807.cms
  1.  

 

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BeautifulGame Newbie

BeautifulGame

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Income Tax department has added a new window in their I.T. E-FILING WEBSITE viz " ACCOUNT CASH TRANSACTIONS " , from yesterday morning.

The moment CASH is deposited into your Bank a/c , the amount will immediately reflect in this WINDOW of the I.T. Department. All the Banks Server's have been linked with the CPU of I.T. Department for CASH transactions.

7c5b7a76259f9258561ef4d171351a2c.jpg

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tweaker Grand Master

tweaker

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Rich Man Mr. Crorepati wants to exchange say 5 Cr. of his cash, for new notes, and needs a number of people to do this for him. None of the taxpayers will accept his generous deposit into their accounts, so we know it will be all the poor people he can muster up.

Those 'poor' people will have to have bank accounts, of course, or ID to open new ones. Fine.

 

Let's say he is able to find ten sacrificial goats (also called 'bakras' in Hindi) to agree. Each of them deposits 50 lakhs in their accounts, suddenly. We know this is trouble straight away, because each of them will have to explain where the money came from. Even the bank will warn them, for the manager will lose his job if he doesn't take all the details, and the money these depositors have is just paper anyway, just that it has not yet been realized by Mr. Crorepati.

So, to avoid suspicion, Mr. Crorepati will have to find 100 people to deposit 5 lakhs each. That pushes these 100 people into taxable income category! Government is very happy! They will all pay taxes on the 5 lakh deposit each, if they can or cannot explain where the extra money came from. They won't let go of the money so easily either, because of this. Mr. Crorepati goes, "Shit, this SOB Modi is a pain in the ass!"

So, Mr. Crorepati now has to find 200 people willing to deposit 2.5 lakhs each into their accounts. The government saw this coming, and has set this as a limit to start explaining, or face a 200 percent penalty!

 

By now, Mr. Crorepati has sent out a message! He needs 500 people to deposit 1 lakh each. Surely, this has to be easy! Of course a lot of people can say they kept the money hidden for an emergency etc., and the banks will have no problem accepting this deposit. Except, that this money can only come out at 20,000 a week, so nobody can run away in a flash.

 

Let me tell you why this won't happen very sweetly in India!

With 500 people serving just one Mr. Crorepati, all of them will have to be crazy and desperately scared of this rich idiot, to stay in the same place after becoming richer by a lakh, which will also take them 5 weeks to withdraw, but can withdraw from anywhere! Mr. Crorepati is waiting patiently, because... no other go!

 

I guarantee at least half of them will disappear to other places to set up a new life. Mr. Crorepati cannot register a complaint against any of them! So, he will run himself ragged trying to find them.

 

The story just gets very interesting. The other half of these 'poor' suckers who suddenly managed to put an extra one lakh into the account cannot just leave, and that's understandable. Now the government notices how rich they are, and won't question them about where they got the money, but depending on the number of such selfless services the whole lot of them lent to the nation, will be very happy to knock off their benefits like direct deposits, subsidies etc., which are all going into these accounts these days. The Aadhar linking was not done for fun.

 

At some point, someone is going to get mighty pissed and will gang up with the others to spill the beans on Mr. Crorepati, now rechristened Mr. Lakhpati.

 

Who will be really interesting in behaviour, are large farmers, since they may have large amounts of cash, from big harvests, and have loaned out money, etc. They can all show they got their money from agriculture and there won't be any questions asked. Farmers pay no tax on agricultural income anyway.

 

But to be able to suddenly deposit a lot of cash, they should have substantially large agricultural incomes to start with. It would be impossible for a lot of black money holders to find such people and deposit into their accounts, and get new money back within the stipulated time till December 30th, 2016.

 

Heck, each account can yield only 80,000 rupees a month in withdrawals. Even if we spread all the black money into all the quiet, uncomplicated, 'poor' accounts in the nation, it will still net several lakhs of crores in taxes and penalties.

 

Havala businesses have been rudely disrupted. They cannot transact anything for over a month, after which they will struggle massively to survive. Disruption of this nature cannot be designed in detail. It will get super ugly for a lot of people.

 

The fun has just started. Not a good time to be a rodent with the tunnels blocked on every side and smoke filling up fast.

Death and destruction for many devilish habits that we have tolerated for far too long.

 

30th December, twenty sixteen. Judgment day.

It's most certainly going to be a Happy New Year for India!

You can bet your white money on it!

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jalebi_bhai Rising Star

jalebi_bhai

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3 hours ago, tweaker said:

Rich Man Mr. Crorepati wants to exchange say 5 Cr. of his cash, for new notes, and needs a number of people to do this for him. None of the taxpayers will accept his generous deposit into their accounts, so we know it will be all the poor people he can muster up.

Those 'poor' people will have to have bank accounts, of course, or ID to open new ones. Fine.

 

Let's say he is able to find ten sacrificial goats (also called 'bakras' in Hindi) to agree. Each of them deposits 50 lakhs in their accounts, suddenly. We know this is trouble straight away, because each of them will have to explain where the money came from. Even the bank will warn them, for the manager will lose his job if he doesn't take all the details, and the money these depositors have is just paper anyway, just that it has not yet been realized by Mr. Crorepati.

So, to avoid suspicion, Mr. Crorepati will have to find 100 people to deposit 5 lakhs each. That pushes these 100 people into taxable income category! Government is very happy! They will all pay taxes on the 5 lakh deposit each, if they can or cannot explain where the extra money came from. They won't let go of the money so easily either, because of this. Mr. Crorepati goes, "Shit, this SOB Modi is a pain in the ass!"

So, Mr. Crorepati now has to find 200 people willing to deposit 2.5 lakhs each into their accounts. The government saw this coming, and has set this as a limit to start explaining, or face a 200 percent penalty!

 

By now, Mr. Crorepati has sent out a message! He needs 500 people to deposit 1 lakh each. Surely, this has to be easy! Of course a lot of people can say they kept the money hidden for an emergency etc., and the banks will have no problem accepting this deposit. Except, that this money can only come out at 20,000 a week, so nobody can run away in a flash.

 

Let me tell you why this won't happen very sweetly in India!

With 500 people serving just one Mr. Crorepati, all of them will have to be crazy and desperately scared of this rich idiot, to stay in the same place after becoming richer by a lakh, which will also take them 5 weeks to withdraw, but can withdraw from anywhere! Mr. Crorepati is waiting patiently, because... no other go!

 

I guarantee at least half of them will disappear to other places to set up a new life. Mr. Crorepati cannot register a complaint against any of them! So, he will run himself ragged trying to find them.

 

The story just gets very interesting. The other half of these 'poor' suckers who suddenly managed to put an extra one lakh into the account cannot just leave, and that's understandable. Now the government notices how rich they are, and won't question them about where they got the money, but depending on the number of such selfless services the whole lot of them lent to the nation, will be very happy to knock off their benefits like direct deposits, subsidies etc., which are all going into these accounts these days. The Aadhar linking was not done for fun.

 

At some point, someone is going to get mighty pissed and will gang up with the others to spill the beans on Mr. Crorepati, now rechristened Mr. Lakhpati.

 

Who will be really interesting in behaviour, are large farmers, since they may have large amounts of cash, from big harvests, and have loaned out money, etc. They can all show they got their money from agriculture and there won't be any questions asked. Farmers pay no tax on agricultural income anyway.

 

But to be able to suddenly deposit a lot of cash, they should have substantially large agricultural incomes to start with. It would be impossible for a lot of black money holders to find such people and deposit into their accounts, and get new money back within the stipulated time till December 30th, 2016.

 

Heck, each account can yield only 80,000 rupees a month in withdrawals. Even if we spread all the black money into all the quiet, uncomplicated, 'poor' accounts in the nation, it will still net several lakhs of crores in taxes and penalties.

 

Havala businesses have been rudely disrupted. They cannot transact anything for over a month, after which they will struggle massively to survive. Disruption of this nature cannot be designed in detail. It will get super ugly for a lot of people.

 

The fun has just started. Not a good time to be a rodent with the tunnels blocked on every side and smoke filling up fast.

Death and destruction for many devilish habits that we have tolerated for far too long.

 

30th December, twenty sixteen. Judgment day.

It's most certainly going to be a Happy New Year for India!

You can bet your white money on it!

It's beautiful.

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