Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 8th November 2016, 22:38   #46
BHPian
 
r_devakumar's Avatar
 
Join Date: Jan 2005
Location: Chennai
Posts: 246
Thanked: 88 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

For the honest tax payers (read as salaried class), this is a good news which will smoother their frustration (of seeing those people who accumulates their wealth with black money) little. A very good move. The government should start work on making infrastructure to enable digital transaction at all level so that we don't need 500, 2000 notes also in future
r_devakumar is offline   Reply With Quote
Old 8th November 2016, 22:38   #47
BHPian
 
Join Date: Sep 2014
Location: Trivandrum
Posts: 138
Thanked: 348 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Wow what a great move, but will create some hurdles for people like me.
For example monthly pay for
1. house keeper (maid servant) - average comes around 5k PM
2. private school bus - Around 2.5K.
3. Milk - 2K

Bus tickets, auto charges, news paper will not be affected as it does not cross 500 per transaction.

There are some doubts like how to pay House Tax, Electricity, RTO (as far as I know all are not computerised) - may be cheque will be accepted in these government offices.

I hope this won't be rolled back.
kozhissery is online now   Reply With Quote
Old 8th November 2016, 22:39   #48
BHPian
 
Join Date: Jul 2016
Location: Pune
Posts: 38
Thanked: 43 Times
Default

Quote:
Originally Posted by Samurai View Post
That stuff is just science fiction. To send information back to the satellite, each currency note will have to have very powerful .

That's like each note having built-in satellite phone.
Also you cannot take the chip out without destroying the note. It can detect the notes upto 120 meters under the ground. Satellite can approximately tell if there is stack of money kept somewhere - still cannot believe it's true. Modi's surgical strike
lHarpreetl is online now   Reply With Quote
Old 8th November 2016, 22:39   #49
BHPian
 
diyguy's Avatar
 
Join Date: Jun 2009
Location: Chennai
Posts: 250
Thanked: 111 Times
Default

The number of tax payers will go up significantly and am sure the tax department cannot run investigations into so many. From my memory a few years back there were only 1.5L tax payers in the country. Imagine how many more will now be paying tax. So I think it is impossible to run investigations into all declarations and the ones who do get caught will bribe their way out of it...
diyguy is online now   Reply With Quote
Old 8th November 2016, 22:46   #50
BHPian
 
devrajman's Avatar
 
Join Date: Mar 2009
Location: Bangalore
Posts: 504
Thanked: 116 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

PMO Press Release PDF with all details
Attached Files
File Type: pdf press_cancellation_high_denomination_notes.pdf (127.1 KB, 305 views)
devrajman is offline   Reply With Quote
Old 8th November 2016, 22:49   #51
BHPian
 
csnanjappa's Avatar
 
Join Date: Mar 2009
Location: Bangalore
Posts: 268
Thanked: 49 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by kozhissery View Post
Wow what a great move, but will create some hurdles for people like me.
For example monthly pay for
1. house keeper (maid servant) - average comes around 5k PM
2. private school bus - Around 2.5K.
3. Milk - 2K
Ask if all the above have a bank account and register their account for online money transfer .
csnanjappa is offline   Reply With Quote
Old 8th November 2016, 22:55   #52
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: B'lore-Manipal
Posts: 22,233
Thanked: 13,976 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by stanjohn123 View Post
Now if we have to deposit this money back into our savings account, it becomes taxable ? Why should we pay tax for it when the money was never earned in India but abroad ? That's not fair.
If the tax was already paid in the foreign country, then you won't have to pay again. India has double taxation avoidance agreement with most countries. So you have nothing to worry.

Quote:
Originally Posted by lHarpreetl View Post
Also you cannot take the chip out without destroying the note. It can detect the notes upto 120 meters under the ground. Satellite can approximately tell if there is stack of money kept somewhere - still cannot believe it's true. Modi's surgical strike
This is science fiction stuff. Don't believe it.
Samurai is offline   Reply With Quote
Old 8th November 2016, 22:57   #53
BHPian
 
400notout's Avatar
 
Join Date: Mar 2013
Location: Navi Mumbai
Posts: 146
Thanked: 357 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Not being a party pooper here are a few points to ponder;

1) Powerful people might have already converted cash to land, settle bills, outstandings etc.

2) This will affect/confuse only business people which includes every one from real estate tycoons to provision store keepers the common maid who stocks cash to save tax or dont have a bank account.

3) Maybe counterfeiting notes could be difficult, but life will go on for Bribe takers, Drug peddlers and other criminals. Corruption wont be affected.

They will be inconvenienced till the new notes are into circulation. Tracking notes on GPS? thats good material for the next Akshay Kumar action flick.

4) You just need trustworthy people to deposit cash in their accounts, or maybe if you know a petrol pump owner who could convert your cash for you.

This move would have been great, but reintroducing 2k notes kind of beats the purpose. some people will lose the money. Poor people will be taken for a ride for a while.
400notout is offline   Reply With Quote
Old 8th November 2016, 22:57   #54
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,911
Thanked: 15,572 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by kozhissery View Post
Wow what a great move, but will create some hurdles for people like me.
For example monthly pay for
1. house keeper (maid servant) - average comes around 5k PM
2. private school bus - Around 2.5K.
3. Milk - 2K

Bus tickets, auto charges, news paper will not be affected as it does not cross 500 per transaction.

There are some doubts like how to pay House Tax, Electricity, RTO (as far as I know all are not computerised) - may be cheque will be accepted in these government offices.

I hope this won't be rolled back.
For maid servant use
2000*2 + 500*2 = 5000
School bus = 2000*3 + 500*3
Milk = you buy it regularly, so 100rs will suffice.

They are replacing the notes with new ones. so you will have 2000rs and 500rs, no 1000rs.

That said what about people outside India having cash? I guess they can directly burn the money instead of buying firecrackers and then burning the money.
tsk1979 is offline   Reply With Quote
Old 8th November 2016, 23:01   #55
Distinguished - BHPian
 
condor's Avatar
 
Join Date: Jun 2006
Location: Speed-brkr City
Posts: 10,515
Thanked: 3,980 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by Eddy View Post
Which is not fair who declared the money under the amnesty scheme. They paid 45%, while someone who deposits now will pay a max of 30%.

Unless of course, there is an investigation into how he got this money which the 45% guys escaped.
Like Samurai said - there will most likely be an investigation. Drastic increase in income would be questioned - and a suitable tax slapped on this part.

Quote:
Originally Posted by AltoLXI View Post
I also feel the investments in real estate will take a hit now. What do you all feel?
Yes. This is a pain point for many salaried class who have purchased their first /second property in the last few years. But no pain, no gain. The gain would come indirectly through lower inflation.

Quote:
Originally Posted by r_devakumar View Post
For the honest tax payers (read as salaried class), this is a good news which will smoother their frustration .. . The government should start work on making infrastructure to enable digital transaction at all level ...
+1 on both counts. Salaried class and lower income groups both would not have much to lose here.

The Govt MUST scrap the 2.5% surcharge on card transactions. This will reduce the need to carry cash, and will move a lot of transactions to the digital & white channels.

Quote:
Originally Posted by kozhissery View Post
Wow what a great move, but will create some hurdles for people like me.
For example monthly pay for
1. house keeper (maid servant) - average comes around 5k PM
2. private school bus - Around 2.5K.
3. Milk - 2K
Once the dust settles, these will again be small transactions. The 500 Rs notes are going to be back, even if in lesser numbers.
condor is online now   Reply With Quote
Old 8th November 2016, 23:05   #56
BHPian
 
Join Date: Jul 2016
Location: Hyderabad
Posts: 380
Thanked: 309 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Used car market is going to take a hit as well. A lot of black money is directly spent on high-end cars bought from the used car market.

Anything on the cards for the enthusiasts, used cars getting cheaper eventually?
jetsetgo08 is offline   Reply With Quote
Old 8th November 2016, 23:06   #57
BHPian
 
concorde24's Avatar
 
Join Date: Aug 2016
Location: Chennai
Posts: 50
Thanked: 56 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by 400notout View Post
Not being a party pooper here are a few points to ponder;

1) Powerful people might have already converted cash to land, settle bills, outstandings etc.

.
Agree with your comment partially- Powerful people may have already converted to Land/Gold etc.

But consider the situation, when they need to sell Land/Real estate - will need to find a buyer who will pay 100% white/new notes or via Loan. At present real estate is mostly under reported. So demand is set to fall further and only genuine honest taxpayer will benefit if the price comes down

Scrapping Rs 500 & Rs 1,000 notes to hit real estate deals


Quote:
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.


The real estate sector in India contributes about 11 percent of the gross domestic product (GDP). Investment in property is a common means of parking unaccounted money and a large number of transactions in real estate are not reported or are under-reported
concorde24 is offline   Reply With Quote
Old 8th November 2016, 23:18   #58
Distinguished - BHPian
 
condor's Avatar
 
Join Date: Jun 2006
Location: Speed-brkr City
Posts: 10,515
Thanked: 3,980 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by tsk1979 View Post
That said what about people outside India having cash? I guess they can directly burn the money instead of buying firecrackers and then burning the money.
Can go to RBI directly on their next visit (upto 31-March-2017) - they anyway have an alibi for not being able to convert before the 50-day deadline.

Last edited by condor : 8th November 2016 at 23:29.
condor is online now   Reply With Quote
Old 8th November 2016, 23:18   #59
BHPian
 
diyguy's Avatar
 
Join Date: Jun 2009
Location: Chennai
Posts: 250
Thanked: 111 Times
Default

Gold and other precious metals/elements will be smuggled in more and more so that people can invest in them rather than hoarding cash...
diyguy is online now   Reply With Quote
Old 8th November 2016, 23:19   #60
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,452
Thanked: 3,560 Times
Default re: Government scraps Rs 500 and Rs 1000 notes!

Property rates will fall drastically. A chunk of your property value is in terms of black money. Bigger the property, bigger is the proportion of the cash involved. Circle rates i.e. the actual declared value of the property is only 20-30% at best, at least in Delhi ( I am talking about independent houses here, it might be a little more for smaller flats and apartments). All these will fall now since the cash component will evaporate. Hence your 10 Cr property till today will be only worth 3-4 cr from tomorrow, its actual value according to government circle rate.
drmohitg is online now   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Government likely to award 21 highway projects for Rs. 28,000 crore & 1,500 kms S2!!! Street Experiences 1 22nd December 2015 20:05
Fake Currency Notes - How do you tell the difference? kedarwalke Shifting gears 24 11th July 2012 17:22
Know your pace notes Tom Indian Motorsport 15 14th June 2004 20:09
Journey Notes - Bangalore- Cochin in a Vtec ajmat The Indian Car Scene 13 16th April 2004 20:29


All times are GMT +5.5. The time now is 20:31.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks