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

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

#251

Post by calvinbhai »

pharke wrote: post #59
h43k3r wrote: post #8

Earlier quoted context omitted.

It is. To get new notes, you will have to submit the old notes to the bank. In that case, you will have to declare the money to the Income Tax department. And if the sum is huge, a criminal enquiry will be started by IT department. Also this will at once curb all the fake note issues.

Isn't this exactly the issue addressed by money laundering? Would this not simply force a large number of people into dealing with organisations or individuals who can convert their existing stockpile of (no longer valuable) cash into a smaller pile of cash that still has buying power? A naive approach would be to 'hire' a large number of people to cash in amounts of notes that would be just under the level considere…

No one will be willing to do that work. And its difficult to scale such operations. They may convert some small amount (probably upto 50k), but anytihng more than that, it'll be getting tougher

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

#253

Post by calvinbhai »

titomc wrote: post #133

All the black money is in gold, dollars & euro ! or at the swiss banks. This is not going to smoke out the big players in this game.

you are thoroughly underestimating how many notes are stashed in homes, under the beds, in the walls, in the water tanks and attics.

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

#254

Post by shashi20008 »

wav-part wrote: post #236
somethingsright wrote: post #230

Earlier quoted context omitted.

It will work for the current undeclared income . Soon people will begin hoarding the new currency notes. Or become wise and not stash money in currency. Under the recent tax amnesty scheme if somebody had declared rental income, or business income, they will have to continue declaring it for years to come. I personally believe that the bigger players in undeclared income are not keeping it in cash, they have assets b…

> The current method is a way to fight black money. For corruption there are other ways, and maybe some will be taken. "Black money" term is so misplaced, it should be untaxed ruppes. It wont affect untaxed assets (overeseas and here). And guess who has most untaxed ruppes and who cant afford to lose any more ? Low/Middle Class. Good job Modi. You just alienated they very people who voted you in the office.

I too do not think this move alone would solve "Black Money" problem in long term, but it certainly will go a long way in setting a better trend.

> You just alienated they very people who voted you in the office.

All govts till now have been doing politically right thing, rather than morally right. If a Govt., for once, tries to go beyond the vote-politics and do what's right, shouldn't that be a welcome change?

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

#255

Post by __Joker »

wav-part wrote: post #243
whack wrote: post #227

Earlier quoted context omitted.

> Why did we have so much black money in India? Coz people didn't want to pay taxes. Why didn't people want to pay taxes? Because they got nothing in return. Sorry, I don't buy this argument. People in every country, regardless of how good their government is, want to personally pay as little taxes as possible. If people in XYZ-Amazing-Country knew that they could reduce their personal tax bill by 30% in a way that's…

So ? Are you saying we should pay taxes even if governement is wasting most of it ? You know what would motivate me to pay taxes ? Crystal clear development plans with additional gurantees that It would not be used to support bloated bureaucracy and subsidies. Also who said governements are the only one who has to develop infrastructres ?

No, you should pay taxes and make government accountable to it.

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

#256

Post by __Joker »

billy8988 wrote: post #28

It is hardly going to fix the black money problem. Rich people have so many employees to do the bank run for them. Within the next month, you will see a huge spike in real estate market. People with black money will dump it in the real estate market. (If you are not an Indian, this is how it works. You buy an apartment/home/building for the amount X. But you declare it to the government that you bought it for X/10. T…

Actually dumping into real estate, gold etc. is not bad because your govt will get taxes out of the transaction at the least. Problem with black money is not that some body hoarded it. Problem is some body hoarded it with out paying taxes.

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

#257

Post by nileshtrivedi »

intended wrote: post #204
solutionyogi wrote: post #52

I am originally from India, living in NYC for last 10 years. Black money is a major problem in India, it's directly fueling This is an ingenious way to handle the problem at its root. I don't know how Government is going to handle this transition in a country as big and diverse as India. Personally, I prefer the rip-off-the-band-aid approach. The only thing I disagree with is the ATM daily/weekly withdrawal limit (10…

Who says black money is a major problem in India ? I keep hearing this, and then I see no proof. Right now I see people conflating the unorganized sector with black money - and these are two separate things. Any ideas where I could find supporting data from a major economic body ?

How about the fact that only 1% Indians pay Income tax? https://www.thequint.com/hot-wire/2016/05/01/only-1-per-cent...

The official number of millionnaires in India are ridiculously low. This is not due to tax exemptions, but due to income not being declared in the first place.

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

#258

Post by Kadin »

fgpwd wrote: post #225
pritambaral wrote: post #207

Earlier quoted context omitted.

I remember reading about the Indian government passing regulations for the tight control of Bitcoin ₹ transactions in the country.

But there can still be Bitcoin Bitcoin transactions as an alternative to Paytm et al. It's very unlikely to pick up though I guess.

Most people are only interested in Bitcoin insofar as it's convertible to a local currency. So if it's difficult to do that, it's difficult to use Bitcoin for most transactions.

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

#259

Post by shas3 »

umeshunni wrote: post #233
nish1500 wrote: post #18

I grew up in a tier-2 city in India, and the amount of black money rich people hoard around here is of ginormous proportions. Easily > 50% of the income for most rich folks. Can't wait to see how this unfolds.

How do they hoard this money? As cash?

Cash, money-laundering, sketchy real estate transactions (Benami- transactions under fake names), informal banking (hawala), the same as in most places in the world. Think early mafiosi in the US. The most significant legislative actions for curbing these are: Benami and Hawala legislations, computerization of land records in the late 90s and early 2000s, PAN numbers in the 90s and Aadhar in the last few years (a bit like SSN in the US), and the OP.

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

#260

Post by wav-part »

shashi20008 wrote: post #254
wav-part wrote: post #236

Earlier quoted context omitted.

> The current method is a way to fight black money. For corruption there are other ways, and maybe some will be taken. "Black money" term is so misplaced, it should be untaxed ruppes. It wont affect untaxed assets (overeseas and here). And guess who has most untaxed ruppes and who cant afford to lose any more ? Low/Middle Class. Good job Modi. You just alienated they very people who voted you in the office.

I too do not think this move alone would solve "Black Money" problem in long term, but it certainly will go a long way in setting a better trend. > You just alienated they very people who voted you in the office. All govts till now have been doing politically right thing, rather than morally right. If a Govt., for once, tries to go beyond the vote-politics and do what's right, shouldn't that be a welcome change?

> I too do not think this move alone would solve "Black Money" problem in long term, but it certainly will go a long way in setting a better trend.

Only if the problem is inadequate tax revenue, which is not the problem IMHO. Its tax spending.

> All govts till now have been doing politically right thing, rather than morally right. If a Govt., for once, tries to go beyond the vote-politics and do what's right, shouldn't that be a welcome change?

Not before coming up with better tax spending plan. I have never gotten my taxes worth nor I expect It now, irregardless of how much they take my money.

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