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Old 9th November 2016, 00:09   #76
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Forwarded as received: (not my language or choice of adjectives)


How Income Tax can be abolished and yet make India stronger.

Read in full the wonderful paper.

Anil Bokil , one of the key member of Arthakranti Sansthan was given time to share to PM Modi. He was given 9min for sharing but Mr Modi heard him for 2 hrs. The fundamental framework had been patented by the Same than, but I personally feel the Sansthan should gift the proposal to India.

Arthakranti Proposal

What is Arthakranti Proposal and who has given the proposal?

“Arthakranti Proposal” has been given by a Pune (Maharashtra) based “Arthakranti Sansthan” which is an Economic Advisory body constituted by a group of Chartered Accountants and Engineers. The fundamental framework has been patented by the Sansthan.

Arthakranti Proposal is an effective and guaranteed solution of Black Money Generation, Price rise and Inflation, Corruption, Fiscal Deficit, Unemployment, Ransom, GDP and industrial growth, terrorism and good governance.

What is in the Proposal ?

“Arthakranti Proposal has FIVE point of actions simultaneously.

(1) Scrap all 56 Taxes including income tax excluding import duty.

(2) Recall and scrap high denomination currencies of 1000, 500 and 100 rupees.

(3) All high value transaction to be made only through banking system like cheque, DD, online and electronic.

(4) Fix limit of cash transaction and no taxing on cash transaction.

(5) For Govt. revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount

Important Points to note:

(1) As on today total banking transaction is more than 2.7 lakh crores per day say more than 800 lakh crores annually.

(2) Less than 20% transaction is made through banking system as on today and more than 80% transaction made in cash only, which is not traceable.

(3) 78% of Indian population spend less than 20/- rupees daily why they need 1000/- rupee note.

What will happen if All FIFTY SIX Taxes including income tax scrapped :

(1) Salaried people will bring home more money which will increase purchasing power of the family.

(2) All commodities including Petrol, Diesel, FMCG will become cheaper by 35% to 52% .

(3) No question of Tax evasion so no black money generation.

(4) Business sector will get boosted. So self employment.

What will happen if 1000/ 500/ 100 Rupees currency notes recalled and scrapped :

(1) Corruption through cash will stopped 100%.

(2) Black money will be either converted to white or will vanish as billions of 1000/500/100 currency notes hidden in bags without use will become simple pieces of papers.

(3) Unaccounted hidden huge cash is skyrocketing the prices of properties, land, houses, jewellery etc and hard earned money is loosing its value; this trend will stop immediately.

(4) Kidnapping and ransom, “Supari killing” will stop.

(5) Terrorism supported by cash transaction will stop.

(6) Cannot buy high value property in cash showing very less registry prices.

(7) Circulation of “Fake Currency” will stop because fake currency printing for less value notes will not be viable.

What will happen when Banking Transaction Tax (2% to 0.7%) is implemented :

(1) As on today if BTT is implemented govt can fetch 800 x 2% = 16 lakh crore where as current taxing system is generating less than 14 lakh crore revenue.

(2)When 50% of total transaction will be covered by BTT sizing 2000 to 2500 lakh crores, Govt will need to fix BTT as low as 1% to 0.7% and this will boost again banking transaction many fold.

(3) No separate machinery like income tax department will be needed and tax amount will directly deposited in State/Central/District administration account immediately.

(4) As transaction tax amount will be very less, public will prefer it instead paying huge amount against directly/indirectly FIFTY SIX taxes.

(5) There will be no tax evasion and govt will get huge revenue for development and employment generation.

(6) For any special revenue for special projects, govt can slightly raise BTT say from 1% to 1.2% and this 0.2% increase will generate 4,00,000 crores additional fund.

Effects, if implemented today :

(01)Prices of all things will come down.

(02)Salaried people will get more cash in hand.

(03)Purchasing power of Society will increase.

(04)Demand will boost, so will production and industrialisation and ultimately more employment opportunity for youth.

(05) Surplus revenue to the govt for effective health/ education/ infrastructure/ security/ social works.

(06) Cheaper and easy loans from banks, interest rate will come down.

(07) Tendency of society will changes from scarcity to quantity.

(08) Spare money for political system for clean politics,

(09) Prices of land/ property will come down,

(10) No need to export beef to cover up trade deficit

(11) Sufficient fund for research and development.

(12) Society will be free from “Bad elements”.

A very nice n simple compilation with logical impact. Worth sharing!!

"ArthaKranti proposal -It will Fully Change India" on YouTube -

Last edited by VeyronSuperSprt : 9th November 2016 at 00:20.
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Old 9th November 2016, 00:38   #77
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by JonSnow View Post
I hope not. Any rollback or delay of any sort will defeat the move.
I think there will be an extension of the 31-Dec deadline for sure, and it might happen at the last moment. And it does not defeat the move. The key event was the demonetisation done after banks and post offices closed for the day. So all 500 and 1000 rupee notes have to come out from the 10-November. Does it matter whether it comes out before 31-Dec or not?
---
Question is how do I, living outside the country, exchange anything? When I don't know when my next trip is planned
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Old 9th November 2016, 00:48   #78
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by narayans80 View Post
I think there will be an extension of the 31-Dec deadline for sure, and it might happen at the last moment.
---
Question is how do I, living outside the country, exchange anything? When I don't know when my next trip is planned
50 days is a long time ..

For you NRI's, you have time till 31-March-2017 to make a trip home, and then declare the amounts to RBI. Your travel into India & working abroad status will be your alibi for the deadlines.
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Old 9th November 2016, 00:54   #79
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by stanjohn123 View Post
This is bull crap. What about people who have taken money from NRI accounts to do business here in India ?

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.
There is no tax issue. The bank or the government is not going to impose any charge or tax on deposits. If you deposit a large sum and subsequently questions are asked by the Income tax department, you can explain where the money came from. That is all. Any questions are unlikely unless you deposit a really large sum.
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Old 9th November 2016, 00:58   #80
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Just returned from the hospital.

The way news channels were brandishing wads of 500 etc, saying that the currency has "No Value" & is "Just Paper" thats worth nothing, scared a neighbour & he had a heart attack this evening.

Please note, there are simple minded people out there who thought they lost everything. The PM's message was NOT conveyed properly. WHY did they need to show pics of people filling currency notes with Kurkure snacks!

Black money, I guess in SO SO many cases, is NOT "ill gotten" or "free" money.
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Old 9th November 2016, 01:12   #81
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by condor View Post
For you NRI's, you have time till 31-March-2017 to make a trip home, and then declare the amounts to RBI. Your travel into India & working abroad status will be your alibi for the deadlines.
I consider the Rs1000 notes I have with me as a donation to the cause of black money eradication . I called SBI California, they do not accept/exchange INR. I do not have any planned travel to India till next summer. Planning a trip earlier to exchange couple hundred $s makes no sense.
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Old 9th November 2016, 01:17   #82
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by narayans80 View Post
I think there will be an extension of the 31-Dec deadline for sure, and it might happen at the last moment. And it does not defeat the move. The key event was the demonetisation done after banks and post offices closed for the day. So all 500 and 1000 rupee notes have to come out from the 10-November. Does it matter whether it comes out before 31-Dec or not?
---
Question is how do I, living outside the country, exchange anything? When I don't know when my next trip is planned
I meant the move to make the notes invalid from tonight. That can't be rolled back or people will get a chance to convert their black money. Regarding the deadline of 31-Dec, there is already a provision to do it till Mar-2017. I'm guessing they will accept beyond that also, if you have valid justification. It will be an inconvenience for sure but i feel it's worth it.
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Old 9th November 2016, 01:36   #83
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Default PM scraps 500 and 1000 rupee notes!

So what's happening to the 2.5% surcharge by government on card transactions , is that thing going to remain for ever?

Pushing for digital currency is good but charging for it isn't.

Last edited by mjumrani : 9th November 2016 at 01:37.
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Old 9th November 2016, 01:41   #84
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Surprised and amazed by the way this was executed

Quote:
Originally Posted by VeyronSuperSprt View Post
Forwarded as received: (not my language or choice of adjectives)


How Income Tax can be abolished and yet make India stronger.

Read in full the wonderful paper.

Anil Bokil , one of the key member of Arthakranti Sansthan was given time to share to PM Modi. He was given 9min for sharing but Mr Modi heard him for 2 hrs. The fundamental framework had been patented by the Same than, but I personally feel the Sansthan should gift the proposal to India.

Arthakranti Proposal.......

"ArthaKranti proposal -It will Fully Change India" on YouTube
Seems interesting. But, eliminating the income taxes? Wouldn't this affect the Government's income? And the Chartered Accountant jobs as well if I'm right?

Though I would love to see this implemented, not sure how it would help the Government run the country!
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Old 9th November 2016, 02:12   #85
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Default re: Government scraps Rs 500 and Rs 1000 notes!

I'm slightly confused about the current Rs-abroad situation, because I thought regulations had eased, but then heard they had not, but, at least at one time in the not very distant past, only residents (not citizens: residents) of India could take/bring a limited amount of Rs in and out of the country.

But I imagine that there is a Rp economy abroad. Perhaps some of that might be described as "black." perhaps some of those are going to suffer. Probably some innocent people will too.
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Old 9th November 2016, 03:24   #86
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Default re: Government scraps Rs 500 and Rs 1000 notes!

I am not sure what's the confusion here? Why it is been said that 500/1000 will have no value now.
From what I understand following will be effected by this decision:
1. People in possession of huge stock of undeclared/ black money in form of 500/1000 notes.
2. People in possession of counterfeit notes.

AFAIK I may at my personal risk accept a INR 500/1000 note from anybody and deposit it the bank till the December deadline.
Only after 31 March 2017 these notes will become absolutely void and invaluable.

This is indeed a very good move by the government.
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Old 9th November 2016, 05:23   #87
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Default re: Government scraps Rs 500 and Rs 1000 notes!

Will this affect the luxury used car market?
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Old 9th November 2016, 05:50   #88
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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But, eliminating the income taxes? Wouldn't this affect the Government's income?
You haven't even read the whole thing before making that statement have you?
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Old 9th November 2016, 06:19   #89
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Default re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by WorkingGuru View Post

Black money, I guess in SO SO many cases, is NOT "ill gotten" or "free" money.
Gotta be the most hilarious thing I heard since morning. Even better than the whatsapp jokes

Unaccounted income - Illegal. Period.
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Old 9th November 2016, 06:25   #90
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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?
Excellent question: after all, even yesterday it was just paper. The only real difference was about the belief in their validity.
If enough people believe that they are a valid substitute for bartering goods and services, there can be a parallel economy in theory with these notes, money is a strange thing of a metaphysical nature that way.
In practice, enough people will not believe in them so this will not happen. Plus, what will happen to soiled or damaged notes - no bank will change them for new.
I am having a hard time convincing my wife that she can still accept these; after all, she has up the end of 2016 to deposit any that she gets till then. So in that sense, it is still legal tender and there is no need to panic and create gridlock. But people being possessed of human nature, I expect to see vast lines in banks tomorrow!
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