![]() | #1771 |
Senior - BHPian ![]() | ![]() My concern here is, the govt keeps going back on their word. First they took a U turn on the cash exchange provision Now they have taken a U turn on their stand on scrutiny for deposits below 2.5L In isolation, these actions are justified, but given that they had said the opposite some time ago, makes one wonder what U turn they are going to pull next. You say that If i have done no wrong, I have nothing to fear. Yet despite being an honest taxpayer, my experience with the the I-T dept have suggested entirely the opposite. Last edited by greenhorn : 20th December 2016 at 16:15. |
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![]() | #1772 |
Senior - BHPian ![]() Join Date: Apr 2005 Location: Pune
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Exactly. The reason why we do not see cash in the numbers laymen would like to see seems to be that the rich and the powerful , in connivance with bank officials, pilfered thousands of crores in hard new currency. |
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![]() | #1773 | |
Senior - BHPian Join Date: Dec 2006 Location: Bangalore
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Rich folks conveniently converted their old currency into new (so they get to keep their black money) while ordinary folks are having to stand in queues or even to do without cash. If all the govt wanted was to convert old currency into new and have that done via Banks, they could have just given a longer window, say 1 year or 1.5 year, to deposit all 500/1000 notes in own bank account, with the currency still being valid for business all this time, or start with 1000 note only. This old to new currency swap has misfired really. Last edited by joslicx : 20th December 2016 at 16:39. | |
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![]() | #1774 |
BHPian ![]() Join Date: Feb 2013 Location: Mumbai
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| ![]() Okay, all said and done, what is going to happen after Dec 30th? That is the date after which everything is supposed to get back to normal. I would hardly think so. In my opinion Govt. may do the following ... 1. Ease up on ATM withdrawals but still restrict it to certain numbers. For e.g. daily ATM withdrawals could be limited to Rs. 5000. I believe this condition might exist for some time to come. Given the push for cash less transactions, Govt. will try to restrict cash to go out into open market. 2. Withdrawal from banks will be eased with a condition that only deposits made in new currency will be allowed to be withdrawn. Any currency deposited in old currency could still face restrictions in withdrawal. 3. Given that Rs. 500 notes are still in short circulation, Govt. might extend the sops given to cashless transactions. 4. Cash unavailability in ATMs will continue at least for another month or so. I think, Govt. could restrict banks from giving out Rs. 2000 notes through ATMs. On a positive note, Govt. may try to rationalize the Income Tax slabs which could finally give relief to many. |
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![]() | #1775 | ||||
Senior - BHPian ![]() Join Date: Apr 2005 Location: Pune
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I hope the government announces a 1-2% tax rebate on digital transactions for businesses ASAP. On another note : I just used PhonePe (फोन पे) app to transfer money into an individuals account. Amazed at how easy it is, without the need for transaction fees. I hope merchants start adopting it ASAP. However, one of my friend's salary account is being shown as "Frozen" for transactions. Any idea why ? | ||||
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![]() | #1776 |
BHPian ![]() Join Date: Feb 2013 Location: Mumbai
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A different form was used to deposit old currency into an account. Besides, they should have marked that deposit separately as they would have to send out report to RBI. But, yes, it won't be that easy to track. |
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![]() | #1777 |
BHPian Join Date: Jan 2016 Location: Chennai
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| ![]() One thing I have noticed is that some people are withdrawing cash as if there is no tomorrow, just to keep it in home for emergency. When questioned they resort to the oft repeated statement of 'My Money, so I have right to do anything with it'. Now, anyone has idea on how much is the amount that is present in the deposit form with banks and how much is the cash component out of this. Because, if everyone start withdrawing their deposits, then will we have enough cash to serve them? |
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![]() | #1778 | |
Senior - BHPian Join Date: Dec 2006 Location: Bangalore
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Since it has been apparent now the goal posts have been changed. Now the big talk is about going digital which is actually fine by me as its not a big problem here in Bangalore. So as I said in my previous post, if all the effort was for getting big denomination cash in bank, then easier would have been to just give people 1 year instead of few hours! Sure some would have used their cash to buy gold/properties/productX but at the end of the day somebody would have had to put the money in the bank! All the money would eventually have come to the bank one way or the other. And nobody would have been inconvenienced. | |
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![]() | #1779 | ||
Senior - BHPian ![]() | ![]() Quote:
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1. just because all the money has been deposited in a bank, it doesnt mean its all white 2. RBI numbers are not accurate - double counting blah blah 3. wait and watch, the govt is going to catch them all using big data 4. Who said that was the stated purpose, or for that matter, if there was a single stated purpose in the first place. and it eventually goes around in circles. Fans of the govt think demonetization is the greatest thing since sliced bread, and will use very innovative logic to defend it, and those who hate it will stage dharnas mourning for the people who died because of it, and those of us with a more nuanced perspective will go mad trying to explain our concerns to either camp ![]() | ||
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![]() | #1780 | |||||
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
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When the notes were invalidated, the black money hoarders were given only two choices (legal). Put these notes all through a proper banking channel, so that it gets accounted and new currency issued. Keep quiet about their stock pile of cash, and see them becoming paper after 30th Dec. This whole exercise was a "roll call parade" of currency notes. The black money hoarders had to do away with their stock pile of Rs.500 & Rs.1000. Yes, they did try many tricks but there again 100% protection is not guaranteed. Quote:
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Think this as a roll call parade at a hostel, or a military camp. Every 500 & 1000 note is now lined up for a parade, and each one literally says "present sir". Their count is tallied with what RBI (the commandant of the camp) knows as the strength of the camp/hostel. A few shady unauthorised people are standing on parade (fake notes), they get thrown out. A few more shady characters got involved in some crime (black money), and now are in a position NOT to return to the camp. RBI the big boss, now formally would strike them of the camp/hostel strength. They are no more soldiers or bonafide residents (illegal tender). Quote:
Last edited by sachinpk : 20th December 2016 at 20:35. | |||||
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![]() | #1781 |
Senior - BHPian ![]() Join Date: Dec 2007 Location: Gurugram
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| ![]() I saw Jaitley on the box yesterday. He did have a logic for this latest ruling. Seems that all avenues of old cash coming in legitimately, are closed. So what is (or rather should be) left are old notes. He does not want people making repeat transactions (what for?) and just adding to the rush, and also a one off input of the cash with you should do. It seems that the declaration, is more to try and catch repeat offenders. |
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![]() | #1782 | ||||
Senior - BHPian Join Date: Dec 2006 Location: Bangalore
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Now it can be made more effective by launching some more initiatives. For example, do away with all high value currency like 500/1000 notes. Have a financial penalty (say 5% or 10%) on high value cash transactions. Simplify IT laws - simply remove all exemptions and have only three slabs, say, 0-5L no tax, 5-10L 10%, 10-100L 20% and 30% for income above 100L. You can think of alternatives for these slabs and rates. But key word is no exemptions which simplifies tax filing a lot and also everybody should pay tax on their income - be it a teacher or a farmer or an engineer or a doctor or even the president! These are some of things that can show to us that govt means business when it utters the word "reform" Quote:
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Last edited by joslicx : 21st December 2016 at 13:42. | ||||
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![]() | #1783 | |
BHPian ![]() Join Date: Sep 2007 Location: Pune
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But then looks like circular #60 this morning reverses #59 and now says that you can deposit money without the form and the two strangers asking questions, provided your account is KYC compliant. Wishing you all a HAPPY NEW FEAR. ![]() | |
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![]() | #1784 | |
BHPian ![]() Join Date: Jun 2013 Location: Toronto
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I think GOI failed to asses significant amount of bankers going rouge and that is a bad thing to have happened. It just that we are a highly corrupt society - a mere dangling of notes and people seem to throw all the honesty in the dustbin. The only other think left to do is to make the 2000 note useless again in some time and make stricter norms for deposit. I believe that 500 is the max currency that should be in circulation. | |
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![]() | #1785 | |
BHPian ![]() Join Date: Feb 2013 Location: Mumbai
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However, there is a major reason why RBI or the Govt. tried to do this. Seeing the increase in the number of deposits, RBI is certain that many people are depositing old currencies through multiple accounts and multiple times. After Dec 30th, all these will be withdrawn back from the accounts effectively replacing the old currency with new. Mind my words, you will see lot of withdrawals post Dec 30th if the withdrawal norms are eased. There will be an increase in the queues at ATMs and banks too. RBI wants that some or most black money should disappear or rather should not come back into the system. Every old note that comes back into the system will have to be replaced with new notes. This will only make the entire demonetization exercise that much more ineffective. On the other hand, people with huge cash piles are finding ways and means to exchange their old notes to new ones and looking at the raids conducted by IT, many of them seem to have been successful in doing so. | |
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