Demonetization beginning against black money........!!!!!!!!

Many people are confusing and Misguiding by saying that the RBI will print more currency than that which is replaced, to waive off the bad or non performing loans of big defaulters, or corporates, which is absolutely false. Only the currency worth which is deposited into banks will get printed again.

Even if all of the 14.85 trillion enters the system by deposit, still the battle is not lost. RBI has identified more than 60000 accounts with a deposit of 1 crore or more. Tax will be collected against the deposited amount as per the norms of RBI. If the amount deposited is found to be black, i.e tax has not been paid over it, and the deposited does not disclose that it is black, higher tax and penalty (about 85% on total) will be charged by IT Department. A conservative estimate is about 1.5–2.5 trillion may be collected as tax and penalty, but for this, IT Department will have to work very hard for coming 1–2 years, given that the department is understaffed.

In the short term, there will be pain due to cash crunch, GDP may get lowered by 0.5–1% till FY17–18, and the unorganized sector will suffer more as it operates on cash. However, the boost to digital transactions due to cash crunch and Govt. Initiatives will help to move India towards a formal economy status, which has long lasting positive impacts. The tax collections will get improved in long term and system will become more transparent.

For a complete assessment of real motive, consequences of demonetization, you can watch the video available at-

This is quite lengthy, about 1 hour, but still a must watch. It is based on factful findings of an economic study conducted by academia.

I don’t know. Estimates are flying around, the wise ones say the de-monetization will lay waste to Rs.300,000 crore of currency assets. Taken alone, that will shrink the market, slow down the economy. I am sure the gov would have kept antidotes to that ready.

How much of this money will the gov get? Depends on how much concealed income & wealth gets declared. Considering the 200% penalty (which means 85% of the money declared will go as tax), it can be anywhere between zero to Rs.250,000 crore.

Wild guess? With the current level of information, it does not get any better.

Presently there are 13 lacs of crore rupees in circulation in denomination of 500 and 1000. since no one knows how much percentage is in black money form, it is immature to predict any exact figure.

Demonetization in 1978 failed. There is a chance for such a failure this time as well. Morarji had become a subject of jokes for Indira Gandhi.

The expected amount of cash which will not be deposited in the bank is about 3 lakh crores out of about 16 lakh crores in circulation ( of 1000 and 500 currency notes). This is a very simple calculation. But as of now , it is known that 11 lakh crores were deposited in just 22 days flat. There are another 27 days full time for old notes.

It might be possible that all of 16 lakh crore might come back in to banking system and were exchanged !! I do agree that some rich would pay 33% tax while they file returns by March 2017. But demonetization is not about collecting higher ( amount) of taxes but it is about “killing” back money forever. Which means the government hoped that about 3 lakh crores it would print and use ( dividend according to BJP economics which is most controversial terminolgy to describe rupee savings as reserves) .

Suppose most of the money in circulation returned back to banks and may be a very neglible amount of money like 45000 crore rupees or a little above that not returned back to banks means demonetization was utter flop. There was an expediture of about 1500 crores to demonetize and about 75 people died while standing in the queues.

So the entire demonetization exercise would be seen in the history as an exercise in futility resembling Mohemmad Bin Tuglaq.

i am not pretty sure that how much black money will come out as a result of demonetization. however one thing is pretty clear that all the black money holders have to start with a big zero. most probably they are nothing left in their hands. there may be a chance that India’s rupee value will raise in mere future, chances of reducing of prices on commodities, fall in real estate price, terror funding is prevented, illegal transactions are been stopped.

people are complaining for standing outside ATM and banks won’t u support and give ur hand for our government to eradicate corruption, black money, terror fundings, fake currencies.

it’s not an order just an humble request to resist these situations for betterment of our nation.

The way deposits in the bank are slowing down i think about 5 lakh crores of blackmoney and 5 lakh crores of fake currency will be out of http://circulation.It will increase use of plastic money which increse the tax collections.