![]() | #2086 | |||||
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
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| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
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The government also had realised that there is lots of unaccounted wealth (stored as cash) in the country, and they are predominantly stored in Rs.500 & Rs.1000 notes (most readily available, and most easy to carry). How can this unaccounted wealth be accounted? Not by conducting raids, nor by checking every one's tax return filings. If that was the case, we could have done these things for the last 50 years. The only way was to force the people who had unaccounted money to come up with that. That was done by making Rs.500 & Rs.1000 illegal tender. The only way for the people who had unaccounted money to get it swapped was through the banks. And any money which goes to the bank gets accounted. Big Data analysis etc. can be used much more easily as 99% of PSU banks are all computerised by now. Once the money hits the bank accounts it is easy to assess a person's income etc. and then take the next steps (prosecution). Their income declarations would also become the base line for the next year's assessment. Once a person files an IT return, he has to do the same in subsequent years (even if he shows zero tax payable). Digitization is just an off-shoot of the whole scheme. From what I could make out if Rs.500 & Rs.1000 (of the old series) occupied 85% of India's floating currency, the new Rs. 500 & Rs.2000 notes would never be circulated at the same level. Which means at least for high value transactions banking/digital channels would have to be used. | |||||
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![]() | #2087 | |||||
Senior - BHPian ![]() | Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
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At least the outgoing RBI gov seemed to have an inklink of these, and he seemed to have kept his mouth shut. Is paranoia a healthy foundation for governing a democratic state? Quote:
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![]() | #2088 |
BHPian Join Date: Aug 2009 Location: Bangalore
Posts: 169
Thanked: 797 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! More time given for exchange would only provide a better window for the hoarders to plan for an exchange; that would completely beat the purpose of demonetisation before it even starts. This, especially because we know the system is corrupt from within. A lot of this will depend on how future pans out, but now a) there is a digital trail for a responsible govt to trace b) there is a renewed knowledge and availability of digital payments for a responsible citizen to follow c) there is a really good shock provided to establishment backed systems outside banking( like cooperative banks) to maintain their books spotless d) there is a warning for sectors like Real Estate where most of the black money used to flow to This exercise has provided the first step to a better economics in the country. Obviously most people will oppose it -- how many people even pay tax ? Experts like Amartya Sen, who bats from the other side now, have mentioned many times previously about the uselessness of the macro economic growth numbers when people's condition does not improve. If the govt can follow thru to actually collect more tax, bring more businesses in the books, and use the revenue acquired productively the future should be better in the long run. Obviously its a big IF. But its not yet time to lose all hope about this. |
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![]() | #2089 | |
BHPian ![]() Join Date: Dec 2016 Location: PGT/PDY
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| Re: Government scraps Rs 500 and Rs 1000 notes! How a Kerala woman woke up to find all her hard-earned money lost to demonetisation, What demonetisation? Quote:
Last edited by deerhunter : 17th January 2017 at 14:46. | |
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![]() | #2090 | |
Team-BHP Support ![]() ![]() | Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
Alright, can somebody suggest a practical alternative to demonetization which would have achieved the same goals (whatever you think it is) without hurting a single individual in the process? | |
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![]() | #2091 | |||
BHPian ![]() Join Date: Dec 2016 Location: PGT/PDY
Posts: 303
Thanked: 989 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
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![]() | #2092 | |
Senior - BHPian ![]() | Re: Government scraps Rs 500 and Rs 1000 notes!
Plenty of people have posted the same thing multiple times before - A phased demonetization like everybody else does + Traceability + Analytics for identifying exceptions + incentives and phased introduction of mandatory cashless alternatives for purchases + building of a cashless payment model without any additional costs to people. Poll Finance reform. When different people have suggested so many different alternatives, not sure why you keep asking for more Quote:
Last edited by greenhorn : 17th January 2017 at 15:10. | |
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![]() | #2093 | |
BHPian Join Date: Sep 2015 Location: Gurgaon/Saigon
Posts: 757
Thanked: 2,468 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
2. It is true, but futile nonetheless, to blame political will to every problem in India. First we need to admit, we are corrupt. All of us. I am a salaried person, and am forced to pay taxes through TDS, so I can boast and take a moral high ground. Those who run businesses, I am yet to find someone who have not hid their real income, or honestly paid income tax every year. And the salaried class have obliged, paying in cash to get additional discounts. Given a chance, no one, I repeat - no one would pay any tax. And there is no incentive for honesty. By bringing in fear of law, this govt have tried to introduce that incentive to pay taxes (at the cost of political support and possible loss of vote bank). Hope they are clear in their plans and implementation of further actions and follow up policies. If anything, it is only the fear of law catching up which can reduce corruption in India. | |
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![]() | #2094 | |
Senior - BHPian ![]() | Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
Then i went abroad and came back, and I legitimately deserved a tax refund due to the period i was abroad, but the income tax authorities decided to make my life difficult and created a demand saying I have not paid (even though my employer takes care of TDS) and have made my life harder. Guess who goes out of his way to reduce his taxes? I wanted to do the right thing, but once bitten, twice shy I guess. | |
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Team-BHP Support ![]() ![]() | Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
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![]() | #2096 | ||
BHPian ![]() Join Date: Dec 2016 Location: PGT/PDY
Posts: 303
Thanked: 989 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
55,000 Indian Villages Don't Have Mobile Coverage. Some parts of India is still unbelievably under-developed. India's poor, especially rural elderly poor, has less access to everything. If one is old and destitute, and is living in one of those villages with no one to look after or talk to, it is very much probable that they might not have heard of demonetisation. Add to this the caste and social stigmas, nothing is improbable in India. It is also highly probable that people who have not heard of demonetisation is in the thousands (India's pop is 130 cr, so 1000s is still very small). Quote:
But our politicians are more interested in keeping power and winning the next election. So political will is unheard of in India. Then honestly, I dont know. Even demonetisation was not practical until they announced it. This black money issue is not going to be resolved until a radical shift occurs in India. Things are almost back to normal wrt black money. How many more demonetisations will be needed to actually weed out all the evaders? Last edited by deerhunter : 17th January 2017 at 15:46. | ||
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![]() | #2097 | |
BHPian Join Date: Sep 2015 Location: Gurgaon/Saigon
Posts: 757
Thanked: 2,468 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
Plus the govt will most likely lose political capital too if it tries hard measures to every extent possible. Common people suffered in this remonetization exercise and will suffer in any follow up plan as well. We need to be open in our minds and accept that it's us, the people of India who are at fault to cultivate such culture of rampant corruption, even if we don't do it, we have got used to of it being a necessary evil. No amount of political will can change it, unless each and everyone of us change ourselves. What a Govt can do (and this govt is doing) is to take some steps hitherto uncharted to try and force people to reboot their way of doing business and transactions. Regarding probability of not knowing in 50 days about the policy, well if someone is managing to live in complete oblivion, cut out from the everyday life, he/she probably don't need (or don't have) 500/1000 rupee notes with them. Else, RBI still accepting old currency. | |
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![]() | #2098 | |
BHPian Join Date: Jan 2015 Location: Bangalore
Posts: 107
Thanked: 141 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
If the laws are lax or poorly implemented or ineffective for whatever reason, then that's the problem which requires fixing. Making every citizen pay at the least or suffer (die?) at the worst for this historic ineffectiveness of law enforcement is pathetic. Right now, it looks like the house has been set on fire to solve the persistent problem of rats. The intentions behind this might have been laudable, but the implementation has been downright horrendous. The govt seems to expect that we should swallow this in the name of patriotism or forgive all implementation shortcomings under the garb of necessary secrecy. Wouldn't true patriotism mean that we care for and work towards the welfare of every fellow citizen of this country and ensure that even the weakest of them is not left behind, instead of standing up to forgive and forget everything that the rulers do. Just as the above story shows, the authorities seem to have swooped in happily to take away 4 lakh from some poor lady, while not a single politician has been raided or caught in the past 2 months. Are we then paranoid in assuming that the politicians are corrupt ? Surely, if more than 2 months of demonetization hasn't caught a single politician, then maybe they didn't have any black money after all ? | |
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![]() | #2099 | ||||
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
Posts: 1,533
Thanked: 1,371 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
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Last edited by sachinpk : 17th January 2017 at 16:07. | ||||
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![]() | #2100 | |
BHPian Join Date: Sep 2015 Location: Gurgaon/Saigon
Posts: 757
Thanked: 2,468 Times
| Re: Government scraps Rs 500 and Rs 1000 notes! Quote:
Having said that, the easiest thing for the Govt to do would have been to do nothing. That's what successive Govt's have done. Otherwise, poor dying is an issue, but why poor are still so poor, why 55000 villages are still not having mobile coverage, why millions of people are still without a bank account etc is not an issue? And I am willing to accept this whole remonetization exercise as a bad move, provided someone tells me ONE GOOD MOVE that should have been taken instead. | |
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