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India's demonetisation of Rs. 500 and Rs. 1000 notes

newsite.thehindu.com

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Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#181

Post by yummyfajitas »

dingo_bat wrote: post #150
ijafri wrote: post #131

Strange, in Pakistan it's the opposite Govt issued Rs. 5000 note which is equal to INR 3171 because otherwise people were using USD 100 bills .... and only making USD stronger locally.. I still don't get how they are going to keep big guys from keeping USD $100 ... I would keep an eye on USD vs INR in coming weeks

In India USD is worthless. I don't know why people would use other country's money unless their own economy is under heavy stress like Zimbabwe or Colombia.

This isn't true at all. You can't buy an auto ride, but USD and Euro are used as reserve currencies. If nothing else, inflation is significantly lower than for rs.

A surprising number of people have asked me if they could change their black money with me for dollars at favorable rates.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#182

Post by leafee »

pavanred wrote: post #155
abraham_s wrote: post #134

500 and 1000 Ruppee note cease to be legal tender as of today midnight. Everyone who has them can get it exchanged for 100 ruppee notes in banks,post offices etc until Dec 31. You need to provide a valid id to do an exchange, which means that the transaction will be traceable and Income Tax department (Indian version of IRS) will be matching them to declared income. ATM and banks are closed for the next couple of day…

How do you invest in land/gold without paying taxes? And, one is required to have the PAN (Permanent Account Number) to transact in gold/land, no?

There is an official transaction, but only for a fraction of the real transaction. The other fraction is done in cash.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#183

Post by patrickg_zill »

sandeshd wrote: post #98
csomar wrote: post #64

Earlier quoted context omitted.

Changing $100 notes to $200 notes will open a new black market for converting 2 x $100 notes to $200. I think just removing the $100 note is safer.

2K notes are not just piece of paper, it does have NGC (Nano GPS Chip) by which income tax department can track the location and exact amount have stashed nearby that location. So sending that amount to some other country or keeping that money underground will be the most foolish thing one can do.

Could it really be GPS? Or does it function more like an RFID chip that can be read at an extended range or distance?

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#184

Post by asenna »

Retric wrote: post #151
7Z7 wrote: post #124

Earlier quoted context omitted.

Maybe I'm misunderstanding, but there is no "without". The new Rs 500 and Rs 2000 notes will cover the difference.

The new bills have yet to hit the streets, and the old bills don't count as long term stores of value. So, for a little while India is arguably 'without' Rs 500 and Rs 2000 notes. Basically, they are no longer bills but checks with expiration dates.

The new bills will start circulating in 2 days.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#185

Post by dx034 »

Scirra_Tom wrote: post #109
dx034 wrote: post #78

Earlier quoted context omitted.

Or quickly buy real estate/gold/farm land above market value. The seller declares the money and pays the tax, the buyer successfully legalized it.

A lot of that will probably be subject to corporation tax. Government still gets a nice boost.

Definitely! I don't doubt that and like the move. But I don't think anyone will be charged with corruption or tax evasion because of it.

But I'm not from India, so pure speculation.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#186

Post by mridulmalpani »

abraham_s wrote: post #134

500 and 1000 Ruppee note cease to be legal tender as of today midnight. Everyone who has them can get it exchanged for 100 ruppee notes in banks,post offices etc until Dec 31. You need to provide a valid id to do an exchange, which means that the transaction will be traceable and Income Tax department (Indian version of IRS) will be matching them to declared income. ATM and banks are closed for the next couple of day…

> (If this measure wasn't carefully planned not to affect "friends" of the current administration(look up Adani Group), I would be greatly surprised and will change my opinion about the current Prime Minister) - I agree with you , but nobody knows the truth.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#187

Post by leafee »

dx034 wrote: post #78
sidcool wrote: post #42

All black money and hoarders will cry to sleep today.

Or quickly buy real estate/gold/farm land above market value. The seller declares the money and pays the tax, the buyer successfully legalized it.

Not so easy. If I buy something for $1 million, I'm going to have to account for the source of that money.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#188

Post by Ar-Curunir »

codeisawesome wrote: post #169
Ar-Curunir wrote: post #127

Earlier quoted context omitted.

Eh? What does this have to do with surveillance?

Seriously? Tracking every transaction gives a complete illumination of every individual's life to any government.

This is not tracking any transactions, though? What the cash does once it's out in the wild is not known to the govt.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#189

Post by owaislone »

Master stroke by the government by introducing 2000 Rupee note without even talking about the inflation and an economy that is in ruins. Good one time move against a subset of corruption and counterfeiting while getting away with not having to answer any questions about bad economic conditions.

I for one hope this leads more people paying taxes even if in the short term so the Government can consider lowering taxes for the middle class.

Re: India's demonetisation of Rs. 500 and Rs. 1000 notes

#190

Post by sudhirj »

dx034 wrote: post #78
sidcool wrote: post #42

All black money and hoarders will cry to sleep today.

Or quickly buy real estate/gold/farm land above market value. The seller declares the money and pays the tax, the buyer successfully legalized it.

Nope. When the seller deposits the money, they'll have to declare sources, including the PAN number of the buyer.
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