[drmohitg]

Originally Posted by sgiitk

Theoretically it should be zero, since one cannot buy a car for cash. However, what I hear on the grapevine is that many people buy cars on finance, and then pay off the loan quietly in cash. So these chaps are now out.

I am really unaware of how the banking world works, but wouldn't that show up on your Tax file since the load was linked with your PAN card in the first place?

[jetsetgo08]

Originally Posted by drmohitg

I am really unaware of how the banking world works, but wouldn't that show up on your Tax file since the load was linked with your PAN card in the first place?

This is quite interesting and a mystery. But, as sir said, the phenomenon of taking loan for a new car and paying/pre-closing it with unaccounted money is not uncommon.

I suppose the approval of a loan itself would mean that the persons income is good enough for him to pre-close with a strict savings of 1 or max. 2 years. As long as the loan is being cleared the IT dept. doesn't seem to intervene. Also, one would earn brownie points from CIBIL.

[drmohitg]

Originally Posted by jetsetgo08

I suppose the approval of a loan itself would mean that the persons income is good enough for him to pre-close with a strict savings of 1 or max. 2 years. As long as the loan is being cleared the IT dept. doesn't seem to intervene. Also, one would earn brownie points from CIBIL.

So then would the bank accept old currency right now to close a loan? Technically they can right? I am still not sure though how and why the IT dept would not red flag you for suddenly having so much hard cash to close your loan. You can do so only if you have enough cash generation in your file in that year. In any case that then becomes declared/white money. There is no way that you can use unaccounted cash for closing the loan.

[SmartCat]

Originally Posted by drmohitg

So then would the bank accept old currency right now to close a loan? Technically they can right? I am still not sure though how and why the IT dept would not red flag you for suddenly having so much hard cash to close your loan. You can do so only if you have enough cash generation in your file in that year. In any case that then becomes declared/white money. There is no way that you can use unaccounted cash for closing the loan.

ICICI Bank and Citibank have sent an SMS saying you can close loans (or just pay monthly EMIs) with Rs. 500 and Rs. 1000 notes. But they have also mentioned that any cash deposit above Rs. 50,000 into loan or credit card account will be reported to the Income Tax department.

[drmohitg]

Originally Posted by smartcat

ICICI Bank and Citibank have sent an SMS saying you can close loans (or just pay monthly EMIs) with Rs. 500 and Rs. 1000 notes. But they have also mentioned that any cash deposit above Rs. 50,000 into loan or credit card account will be reported to the Income Tax department.

Exactly my point. Hence it goes without saying that people can't use their black money to close off loans, not today nor in the past.

[RSR]

One must say the government did do its homework before dropping the demonetisation nuke bomb.

A separate intelligence agency called the Financial Intelligence Unit - India (FIU-IND) was set up to monitor suspicious financial transactions for the purposes of money laundering, terror financing, funding criminal activities, tax evasion etc. All entities (banks, financial institutions etc.) are required to report every suspicion-generating transaction to this unit automatically through the form of STRs or suspicious transaction reports:

Suspicious Transaction Reports

Every reporting entity shall furnish to FIU-IND information of all suspicious transactions whether or not made in cash.

Suspicions transaction means a transaction referred to in clause (h) of the rules, including an attempted transaction, whether or not made in cash which, to a person acting in good faith -

(a) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or

(b) appears to be made in circumstances of unusual or unjustified complexity; or

(c) appears to have no economic rationale or bonafide purpose; or

(d) gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism;

---------------------

Broad categories of reason for suspicion and examples of suspicious transactions for a banking company are indicated as under:

...

Source

So, all reporting entities are required to report every suspicious transaction even during normal circumstances. That's why banks insist upon RBI's KYC norms.

After the demonetisation announcement, the suspicious transaction report would have been set to include all cash transactions above the specified limit. This is what made the Finance Minister so confidently declare that each & every cash transaction above the threshold of Rs. 50,000 per day, or Rs. 2,50,000 in total (for the entire duration of 50 days till December 30) would attract the eagle eye of the taxman.

[arun_kun]

Please do let people know by posting info in this thread if you come across any irresistible deals . It might help people in the forum. Any hyd folks ?

[jetsetgo08]

Originally Posted by arun_kun

Please do let people know by posting info in this thread if you come across any irresistible deals . It might help people in the forum. Any hyd folks ?

I also am searching for a good deal on a used SUV. The demonitazation effect is not yet substantial to entice a purchase. Or may be I am too optimistic.

[sgiitk]

Originally Posted by rrsteer

It should come. In the form of reduced income taxes. Provided of course demonetization is treated by the public at large as was being expected by the government.

Taxes should come down. However, even though it does not suit me, I will opt for a lower GST. Why, GST is regressive with I Tax is progressive.

[VKumar]

Originally Posted by arun_kun

Please do let people know by posting info in this thread if you come across any irresistible deals

Originally Posted by jetsetgo08

I also am searching for a good deal

Same here, I have been searching the deals as of now where the owner is willing to accept the older notes in full cash or partial payment. Found a couple of them and are under process as of now.

[carwatcher]

I am confused as to if a person paying via cash in old notes he has to pay more as no one is ready to accept them and even if the seller doing big favour by accepting them he will ask some premium.

If one is accepting in White then the dates doesn't matter as he can do it even after 30th Dec.

So the target remaining is someone who is in dire need of cash in new notes, but how can we arrange for such cash say 5-6 Lac if there is a cap on withdrawal.

One more target remains is Used Car dealer but even he has to accept via transfer or the limit applies as in the previous case. I am sure that he wont be doing charity by accepting old currency without charging some premium.

Before I get more confused can someone enlighten, thanks.

Even I am looking for a beater car to be used at my native in Jaipur.

[400notout]

Originally Posted by carwatcher

I am confused as to if a person paying via cash in old notes ...

A person willing to take old notes has to be confident about means to dispose it. In such cases people/dealers might accept old notes if it helps sales.

[Born 2 Be Wild]

Originally Posted by carwatcher

I am confused as to if a person paying via cash in old notes he has to pay more as no one is ready to accept them and even if the seller doing big favour by accepting them he will ask some premium.



One more target remains is Used Car dealer but even he has to accept via transfer or the limit applies as in the previous case. I am sure that he wont be doing charity by accepting old currency without charging some premium.

Before I get more confused can someone enlighten, thanks.

Even I am looking for a beater car to be used at my native in Jaipur.

To answer you question quite simply, Any dealer accepting old notes is doing so not at a small premium but a very handsome premium. 2 small examples

1. BMW Z4 2014 before 8th Nov dealer was asking 52 lakhs no customers
car unsold for 7 months. 9th November car sold for 62 lakhs someone walks in with a big bag takes the keys and the RC no questions asked


2. BMW 740I 2012 Before 8th dealer asking for 23 lakhs on the 9th car sold for 28.

Just FYI delhi's dealer fraternity runs on 90% liquid cash and some dealers having stock upwards of 5 crores dont even have current accounts

most will cash out there stock by 30th nov tops and then figure out ways to get rid of the cash is what i know. most dealers arent accepting white as no one is ready to pay a premium in white.

right now the only good deal you may get is from an individual who is upgrading or selling because no dealer is picking up stock in white.

[sukiwa]

Article in mint about demonetisation & impact in used car market. It says market had dipped in first 2 weeks but some regions have already started recovering.

[VKumar]

Okay guys, what will you have to say if I just reveal that, "I saw a 2015 Fortuner A/T 4x2 selling off for 30 lac, all in demonetized cash"?