With the goal to check money laundering, black money and terrorism funding, government will be reducing the cash transaction limits further from the current Rs. 3 lakhs to Rs. 2 lakhs. Beyond these limits, a PAN card would be required. And if one is in violation, both the individuals and organizations receiving such payments. In the early years, penalty will be light but will become more strict with higher penalties in later years.
Source: Business Standard
- 26 Mar 2017
Political commentators thoughts demonetization would backfire on the ruling party. Instead during the recent local and panchayat level elections in Maharashtra and Gujarat, BJP made a clean sweep in both states in a big way. There were always many issues, drought, regional and community agitations such as Marathwada and Patildars. The big recent programme and potential public issue was the demonetization. Opposition parties are leading agitations, bandhs and stalling parliament. But at the ground level voters have spoken in a big and convincingly way about how they see it. So would the opposition listen and respect the verdict?
Source: DNA India
- 3 Dec 2016
No doubt, there is short-term pain and inconvenience. But there are several unexpected and/or unreported benefits to the Rs. 500 and Rs. 1,000 demonetization scheme. Some of these are: a) Maoists or Naxalites have reported been hit hard, b) Stone peling in Kashmir is suddenly stopped, c) there have been no more reports of school burning in J&K, d) Arhar dal prices have crashed in some parts of UP, e) Banks flush with over 3 lac crore of new funds is likely to lead to lower borrowing costs, f) Property prices may come down by 25%, g) All castes and communities stood in the same line, h) Pakistan’s thousands of crore fake and genuine notes are now worthless, i) Havala trade has come to a stop, j) People have shown they are willing to bear short-term pains for long-term gains, k) there is starting to be fear about future actions on black money and tax avoidance.
So all in all an excellent decision!
Source: Facebook posts
- 17 Nov 2016
The Indian government has sown the seeds to reduce corruption and pursue financial reforms in a big way – the latest move to remove Rs. 500 and Rs. 1000 notes is the latest step in that plan. One has to only connect the dots of the government’s plans and actions and it all makes sense. First was the Jan Dhan Yojana which led to over 25 crore new bank accounts being opened, then the Black money act followed by the amnesty Scheme, and most recently the plan to remove these high value rupee notes. The government taken steps to bring small money holders into the system through Rupay, Jan Dhan Yojana and other schemes, while weeding out big money launders and black money. The the latest is the GST – so all is really well thought through. All these actions finally will lead to a surge in the deposits with the bank (let us say surplus money), black money circulation will come down, and these will lead to possibly a big reduction of borrowing interest rates good for both consumers and companies.
Source: DNA India
- 13 Nov 2016
In a shocking anti-corruption announcement, India has scrapped the Rs. 1,000 and Rs. 500 notes. While short-term this will cause inconvenience, this will sweep up lots idle and hidden black money. As PM Modi said, corruption and money laundering are like the “diseases” and “obstacles” to the country’s economic success. This move could bring down inflation, inflation and put a check on money laundering.
- 10 Nov 2016
With push to track down black money and tax defaulters, the Income Tax department has sent out more than 7 lakh tax notices to those who did not provide their PAN numbers, and more may be sent out. With assistance from banks, the notices were sent out to those who from 2009 had either deposited more than 10 lakhs in their account or bought or sold property worth Rs 30 lakh or more.
- 23 Jul 2016
Holding out no assurance of an absolute confidentiality to those disclosing foreign assets on their own, the government today said details of information provided during the one-time compliance window can be revealed in the public interest. The new Black money law provides for this option. Also to note is that there is a 90-day compliance window to help people holding unaccounted assets abroad to come clean by paying 60 per cent tax and penalty.
- 5 Aug 2015