[VeyronSuperSprt]

Originally Posted by Thad E Ginathom

I'm slightly confused about the current Rs-abroad situation

This is similar to the £50 abroad situation when these were demonetised a couple of years ago. The only option remaining was to take them back to the Bank of England - fortunately a Forex dealer here thought otherwise sparing me that headache.

[Sawyer]

Originally Posted by VeyronSuperSprt

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


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

5 cannot ever happen because of the 3 that follows.

It is a well known fact that cost of collecting income tax on other than companies, is much more than the income tax collected, as one example.

It is equally well known that in many places Octroi could not be abolished because the Octroi department staff violently protested against this.

Doing 5 will be tenfolds or more in impact on the jobs of the bureaucracy via 3, which bureaucracy is needed to implement all this. Who will work to eliminate their own jobs, leave alone opportunity for extracting bribes?

Nice thinking, but Ramrajya is extinct, never to return.

[sudev]

Friends Indians and countrymen.....today India asks for your support. Do not panic and create chaos. If you are "reasonably" honest no need to worry.

Cleanse India - swacch bharat

[shankar.balan]

Only a Blitzkrieg of this kind can help in this country. Had they given a warning and then made this currency illegal tender, then the evil politicos, real estate demons and suchlike, would have ample time to stash the cash.

More importantly, all the evil politicos must be tearing their ugly hair! Because all the unaccounted moneys lying in their dirty party slush funds and under their scummy mattresses will have become worthless over night!

May they continue to feel pain forever and may their net worth be rendered null and void forever too!

India is too difficult to manage so harsh scenarios such as the proliferation of ill gotten gains, black money and all the rest of it, can only be handled by harsh measures.

Thankfully Mr Modi has the guts to implement things - to me it is an exercise in fantastic, secret planning and then, sharp, surgical execution.

Blitzkrieg!!!

Some one said "Hard Reset" - superb! I would go a step further and say a "HARD REBOOT" across the network of systems.
Fire is the greatest purifier.

Fantastic!.

[benbsb29]

I do not generally carry much cash with me, and almost always use plastic money where available. However, I had some money saved up in cash for emergency use for taxis, etc when i visit India. Thanks for making that hard-earned tax-paid money worthless.

[crdi]

Originally Posted by aaggoswami

There are very high chances that those who had stashed the money in cash in Rs. 500/- and Rs. 1000/- had heard this grapevine and made necessary arrangements.
Also, its better to store gold, diamond than bundles of cash. This might have been accomplished by many who had black money.

What you have mentioned is quite possible. I had overheard about this plan of the govt, at a watering hole conversation and that was a few weeks after the new govt had come into power. Have nothing to back it though. What the hoarders might have done would depend on whatever credibility they might have given to the information/grapevine.

[VeyronSuperSprt]

Originally Posted by Sawyer

5 cannot ever happen because of the 3 that follows..

That is a management issue (read that as implementation issue if you're an IT guy) and does not make the concept economically unviable.

A lot of measures such as VRS as done in public sector banks etc can be done.

The solutions to these are not something that you can think up or even discuss authoritatively through a mobile screen on a automotive forum.

So let's leave that out.

Originally Posted by Sawyer

Ramrajya is extinct, never to return..

And as far as using the word NEVER is concerned, you would have used it about the Rs.1000 notes yesterday evening till 5 pm.

[Sawyer]

That is like saying draining the ocean to solve the submarine threat is an implementation issue.

Nice idea, not gonna happen.

And you cannot presume to say what I would or would not have said without it just being a presumption.

[RajaTaurus]

Well, how many U turns we have witnessed in recent past on such decisions? I keep my fingers crossed. Common man, small and medium business people are going to be hurt most. Many are going to get their biggest savings wiped out instantly.
But bigger fish who have stashed black money abroad or in $, will never be caught or punished. All those voluntary declarations are just eye-wash.
Another way of big fish eating small fish.

[VeyronSuperSprt]

India is going to demonetise all Rs.500 and Ra.1000/- notes.

Now here's a response below:

Originally Posted by Sawyer

That is like saying draining the ocean to solve the submarine threat is an implementation issue.

Nice idea, not gonna happen.

As mentioned earlier you would have used that response to the demonetisations till 5 pm yesterday. Whether the oceans had to be drained or not.

Looks like you arent getting it, so let's leave it.

[Sawyer]

Originally Posted by VeyronSuperSprt

As mentioned earlier you would have used that response to the demonetisations till 5 pm yesterday. Whether the oceans had to be drained or not.

Looks like you arent getting it, so let's leave it.

You seem to be fond of making presumptions of what I would have said
Leave it is the one thing I agree with you about.

[TheMariner]

Originally Posted by WorkingGuru

Black money, I guess in SO SO many cases, is NOT "ill gotten" or "free" money.

Then why is it in the "black" format ?

[deetjohn]

Kudos! A really brave move. As a salaried employee, I have a good feeling about this.

Transactions for the next few days will be tough, for places where they don't take plastic money, but this is good for the country in the long run. The corrupt - including a large section of politicos - will be wondering what to do.

Will wipe out most of the counterfeit notes and some of the black money.

I had around INR 2500 (500x5) with me, kept for emergencies and I used that just now to tank up the car. They are not issuing change at the bunk, lower denominations are so valuable now, so had to stop at INR 2000. This would have got me a full tank earlier, but Diesel price climbed so much in the last few days.

If you have a petrol car with a large tank, this is your chance for an easy conversion.

[Sawyer]

Since the word surgical strike on black money is being bandied around:

Just like that in the context of Kashmir will not work in isolation and needs a lot of actions surrounding it to also happen for successful resolution of the issue, this one also will not by itself fix the black money issue. A big and important step, but not enough by itself.

India did this once before in 1978, for the same objectives, but it did not work as is obvious. And this is a once in a lifetime thing that can't be resorted to frequently. The inconvenience that all honest Indians will suffer now will only be worth it if the issue is addressed in a comprehensive way.

[sandeepmohan]

It is interesting that the government decided to pull this off after Diwali.