I feel this just taxes the common man, who maybe through a sale of land or house does hold some money that hasn't been taxed. The Ambanis and Birlas and Adanis have front companies that definitely will be used to launder money. And they hold shares as well, which aids to money launder using their foreign companies...anyways..the Govt didn't bring a Paisa back from the big fish holding lacs of crores in Swiss accounts..now this!!! Property prices and all asset values will now how down like crazy!!!
India's demonetisation of Rs. 500 and Rs. 1000 notes
261–270 of 336 posts
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#262Doh! I was in India earlier this year and forgot to change currencies on the way out. Any ideas for a US national holding 9 of the Rs500 notes?
It'd not be unusual even for a resident to be out of the country for a few months. They now need to figure whether it makes more sense to let the cash lying turn worthless or make a trip to "exchange" it!
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#263Can somebody help me here? I am outside India with some cash in 500 and 1000 notes which I keep for immediate use when I arrive in India. What should I do in this case?
Unless you can reach a bank, or postoffice in India, it would be difficult to exchange your cash at full value. If you have a debit card with you, you can simply withdraw from ATM upon your arrival in India. In this case you can forget your cash for now, you can exchange it once you are in India. You can do so after Dec 31st too.
If you do not have a debit card with you, I guess you could call a friend to pick you up at Airport. You could also try your luck with a local Currency Exchanger where ever you are, and ask for a change into 100 rupee notes. It will be costly, but it might work.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#264India is a country where property transactions are rare without a significant portion in hard cash.
If this move has to be any good as advertised, then property prices should take a hard hit.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#265Earlier quoted context omitted.
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.
Which can be classified under "fix your government" but had we done that, we would not even be here.
Up until now governments have been in the background in exploiting its people. But today this has changed. I hope/expect this would pave way for small-limited-government movement in India.
This is the darkness before new morning.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#266reminded about demonetization in 1991 of the 2 top bank notes of USSR - 50 and 100 rubles notes. Similar purpose - supposedly only dishonest corrupted officials, thieves and black market people had significant amount of money stored using those notes. Also USSR government claimed that a lot of those banknotes were brought into the country from outside(!) - supposedly as economic operation against USSR (sounded back then like propaganda crap, so i never even tried to research into it). USSR was already on its way out and that shock (in particular causing significant ruble inflation acceleration) to the already dying economy, was basically the last - half year later USSR de-facto disappeared :) (hi! to everybody who remembers those "exchange money" guys hanging near subway stations back then)
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#267While this sounds great on face value, I doubt this'll solve the root of the problem. 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. Governments (esp Indian) have been historically self serving and power hungry. Tax money is usually either lost by PSUs loaning to the Mallyas of the world or other corrupt bulls…
It's a card you can play once and will only work against small businesses like restaurants and other stores that deal in cash. The big fish will get away as they most likely already have their money laundered and converted to other assets. They wouldn't be holding all their cash in a garage somewhere like Walter White :) I think the one of the big reasons (if not the only one) of doing this is to be able to introduce…
> They wouldn't be holding all their cash in a garage somewhere like Walter White :)
True but someone will get money in return. He will be the sucker.
> I think Indians are among one of the highest taxed citizens in the world if you count direct+indirect taxes vs social welfare offered by the state.
True only for salaried class. Business men and self employed virtually walk away paying negligible taxes. I have friends who pay negligible taxes as compared to I, yet they maintain a lifestyle well beyond what I can dream to afford and I am payed decently even by UK standards.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#268Earlier quoted context omitted.
Can you use USD as currency in India? I haven't seen a single place that would accept that.
You can't buy regular items (e.g. a dosa) with USD except maybe at the airport. From what I'm told, USD is sometimes on the table as currency in black money transactions. I don't know the specific mechanics of it - I'm a firang with no black money.
Yes, they do accept USD at the airports. I've even seen a restaurant at a local airport where they refused to accept INR.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#269It 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.
> Actually dumping into real estate, gold etc. is not bad because your govt will get taxes out of the transaction at the least.
No. Most likely money on paper << money changed hands.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#270One of the most idiotic decisions ever - just wait and watch the anger on the streets in the coming days. India is not ready to be a cashless economy - it is eons away with its illiterate masses.
It's not about going cashless at all. New notes for 500 Rs and 2000 Rs are coming soon.
Read: http://capitalmind.in/2016/11/black-money-is-dead-long-live-...