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Old 8th November 2016, 21:36   #16
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I think the people in the know and the super rich used the amnesty scheme to whiten their money. It is the smaller businesses who are now going to be fleeced by launderers!!
The people will find a way, probably at a steep price.
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Old 8th November 2016, 21:37   #17
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Real estate transactions are the biggest culprit in black money. This move will surely arrest the black money flow. Hope RE does not crash but some sanity will be back in property valuations.
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Old 8th November 2016, 21:37   #18
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by AltoLXI View Post
The entire parallel economy of black money running into lakhs of crores is dependent on higher denomination currencies. Corrupt officials, politicians, real estate industry etc all deal in 500 and 1000 rupees currency notes.
And to add to that, once all the 500/1000 notes are back into the system, they are now white, with a trace as well on who converted how much. There is also a capping put in place. INR 20,000 per week per person. Of course people will find ways and means to withdraw more, asking poor friends and relatives etc, but then again there is a limit to that.

We are talking about lakhs of crores.

In any case, once the entire money is back in the system, generating black money again is a tough task. It is not easy anymore, since there is the requirement on PAN details on withdrawal above, I think, 50k at a time.

This is very very good for the economy.
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Old 8th November 2016, 21:40   #19
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A very drastic move. Massive numbers of businesses & people will be put a lot of inconveniences. Hope the Govt doesn't back down and takes this decision to its logical conclusion
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Old 8th November 2016, 21:46   #20
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Now we know what PM meant by this warning.

There is no limit on how much cash you can deposit. If you hadn't declared the black money before Sept 20th deadline, now you are forced to declare it and pay tax on it.
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Old 8th November 2016, 21:55   #21
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Hopefully the salaried people get some respite now with money coming into the economy, will our tax liabilities come down??
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Old 8th November 2016, 21:55   #22
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Default re: Government scraps Rs 500 and Rs 1000 notes!

If someone has, say, rupees 1 crore as black money with him hidden somewhere, he gotta find many relatives and friends considering that only 7 weeks are left before 31st Dec and max per person can convert is 20000 a week.
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Old 8th November 2016, 21:56   #23
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Are the new notes made of plastic ? Any idea anyone ?

This is really a bold move by the NaMo govt. Hope this weeds out all the black money.
I guess a lot of people just lost their sleep tonight
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Old 8th November 2016, 22:00   #24
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by Sherlocked View Post
If someone has, say, rupees 1 crore as black money with him hidden somewhere, he gotta find many relatives and friends considering that only 7 weeks are left before 31st Dec and max per person can convert is 20000 a week.
No there is no limit as such to deposit the amount in bank or post office accounts from 10th November till 30th December. However there will be a limit on withdrawal of Rs 10000 per day and Rs 20000 per week. This limit will be increased in coming days.
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Old 8th November 2016, 22:01   #25
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by Sherlocked View Post
If someone has, say, rupees 1 crore as black money with him hidden somewhere, he gotta find many relatives and friends considering that only 7 weeks are left before 31st Dec and max per person can convert is 20000 a week.
That limit is on withdrawal, not deposit. If you have 1 crore, you can deposit, but it will become white, and will be considered taxable income for this year.
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Old 8th November 2016, 22:03   #26
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Now this is what you call a game changer. I'm wondering what to do with 20,000 cash - so I can only imagine what people with bag fulls of black money must be thinking tonight

But I have a feeling that this move might create an independent, parellel economy of these extinct notes. Is it possible?
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Old 8th November 2016, 22:08   #27
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by DragonHawk View Post
No there is no limit as such to deposit the amount in bank or post office accounts from 10th November till 30th December. However there will be a limit on withdrawal of R week.
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That limit is on withdrawal, not deposit. If you have 1 crore, you can deposit, but it will become white, and will be considered taxable income for this year.
Thanks for correcting! Yup, this makes more sense.
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Old 8th November 2016, 22:11   #28
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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But I have a feeling that this move might create an independent, parellel economy of these extinct notes. Is it possible?
No. Currency doesn't work like that, they won't have value unless somebody (central bank) underwrites the currency.
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Old 8th November 2016, 22:12   #29
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Hats off to the Govt machinery to keep this information a top secret. Welcome move from the government.
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Old 8th November 2016, 22:13   #30
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by Samurai View Post
That limit is on withdrawal, not deposit. If you have 1 crore, you can deposit, but it will become white, and will be considered taxable income for this year.
Not just that - there could be (and I hope, will be) questions asked about the source of the money by the authorities. And income generated through corruption will be difficult to explain.
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