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DEMONETIZATION – A WELCOME OR A WORRY ?
By CA Mehul R Shah
TABLE OF CONTENT THE CURRENT POSITION FUTHER DETAILS THE NEXT STEP ABOUT NEW NOTES A PLANNED STEP TO CURB BLACK MONEY WHY THE SUDDEN WITHDRAWAL WHAT IF YOU ARE AN NRI/FOREIGN TOURIST?! MISCELLANEOUS CONCLUSION THANK YOU
THE CURRENT POSITIONPM Narendra
Modi demonetizes Rs. 500 and
Rs. 1000 Notes
Rs.500 and Rs.1000 Notes
Valid Legal Tender Until 08/09/2016 12:00 Pm
Banks to not function on 9th Of November
2016
ATM’s to not function on 9th
and 10th of November
FURTHER DETAILS
Banks to exchange old notes for new notes from 10th of Nov till 30th of Dec
ATM’s to restrict daily withdrawal limit upto Rs.2000/day/card till 18th Of NovCash withdrawal against cheque upto Rs.10000/day subject to ceiling of Rs.20000/week till 24th of NovAll electronic modes of payment to be unaffected
THE NEXT STEP
Those who miss the 30th Dec deadline can exchange till 31st of
MarchNew Notes of Rs.500 and Rs.2000
will come into circulationGovt. Hospitals, Pharmacies ,
Railways , Petrol Pumps to accept old notes till 11th of Nov
ATM Limit to be relaxed upto Rs.4000 in the coming days
ABOUT NEW NOTES
NGC would help the government to keep track of
the notes
Rs.2000 notes to contain
NGC
New Notes in
denomination of Rs.500
and Rs.2000
A PLANNED STEP TO CURB BLACK MONEY
JANU
ARY
2013
Direct Benefit Transfer Scheme leads to linking of subsidies, pension directly to bank account
AUGU
ST 2
014 Opening of
Bank Accounts for all through the Jan Dhan Joyana
APRI
L 20
15Requirement of bank account numbers in ITR
A PLANNED STEP TO CURB BLACK MONEY
MAY
201
5Linking of Aadhaar cards with Bank accounts and PAN AP
RIL
2016Excise Duty on Jewellers @ 1%.
JUNE
201
5TCS applicable on Cash Transactions above Rs.2,00,000 from 1.6.2016
A PLANNED STEP TO CURB BLACK MONEY
June
201
6The introduction of Income Disclosure Scheme @45% tax on undisclosed income Se
ptem
ber 2
016IDS resulted
in disclosures of over Rs.65000 crore
Nove
mbe
r 201
6Stringent measures in form of demonetization to curb the menace of black money in India
WHY THE SUDDEN WITHDRAWAL
India being primarily a cash economy has resulted in Fake Notes funding illegal activities such as Terrorism.
Incidence of higher denomination notes in India has increased and lack of safety features in notes has made possible illegal activites through it
The legal tender character of the notes in denominations of 500 and 1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the Reserve Bank of India or at any of the bank branches or at any Head Post Office
WHAT IF YOU ARE AN NRI/FOREIGN TOURIST?!
People not present in India can authorize someone on
their behalf to exchange the
notes
Foreign Tourist can exchange
notes upto Rs.5000 in the next 72 Hours
Person not having bank account can
authorize someone in writing to
exchange the notes
NRI can deposit the old notes in
their NRO account in banks
Authorization to be in written
form along with the exchanger’s proof of identity
MISCELLANEOUS
Exchange of notes to be made
only on ID Proof
Valid ID Proofs are
Aadhar Card , Pan
Card , Driving
License etc
Old Notes can be
deposited in Cash
Machines and Cash Recyclers
Notes exchanged after 30th of
Dec to require
additional documenta
tion
CONCLUSION
One notificatio
n to tackle
Terrorism
Funding
Black Mone
y
Corruption
Counterfeit
Currency
These are just my opinion. Opinion are like wrist watches. All show different times but all think that their time is correct…
ABOUT THE AUTHOR
Author, Mr. Mehul Rasesh Shah is a member of the ICAI. He has pursued certificate Course in International Taxation in the year 2012 conducted by the ICAI. He has also completed his Diploma in IFRS (ACCA, London) and Advanced Diploma in Management Accounting (CIMA, London) in the year 2013. Currently he is handling many Appellate proceedings including representation before the Tribunal and Settlement Commission.
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