99% Of Banned 1,000-Rupee Notes Returned, Says RBI

[Imad.Khan]

i am a staunch supporter of reducing paper money for many various reasons and i thought that it was an excellent decision to remove the 1000 rupee note.

But i am not getting the argument here. Were some people against this move by the govt. If someone can summarize it for me, it would be appreciated.

 

[pothead]

i am a staunch supporter of reducing paper money for many various reasons and i thought that it was an excellent decision to remove the 1000 rupee note.

But i am not getting the argument here. Were some people against this move by the govt. If someone can summarize it for me, it would be appreciated.

Politics.

 

[baajey]

well, most of the currency is back so its good.
I think rest of them were those which we found in nullahs, garbage dumps etc etc.

 

[duhastmish]

well, most of the currency is back so its good.
I think rest of them were those which we found in nullahs, garbage dumps etc etc.

not really many nri kept some money with them. so when they teavel back they can use it. which was not allowed now to even deposit if you provide all details

also some money normaly get torn away and wasted

some money is also with 150 billion people. like i found a few 1000 bills in my wardrobe.
5 to 6 notes. so many people still kept it.

1% is nothing. may be .25 % was black.

also what did we gain by saving .5% of 1000 note economy. on overall economy we lost around 10%. we also wasted lots on printing and logistics to make their dream possible.

people problem were seprate.

now banks are looting public to give their own money back. like atm charges. transaction charge. apart from that you know quality 9f our babus.

 

[jaunty]

The only purpose of de-monetization was to empty the coffers of the opposition parties just before the UP election.

It worked. BJP got a massive victory. Not much the opposition can say or do about it - hardly possible to say that they lost stashes of illegal funds due to demonetization.

So Modi -1 Opposition - 0.

If a PM can play with the economy just for political gains, he's a scum who would lead us to hell for further gains.

Modi - 1, India - 0

Also your assumption that only opposition had black money is quite hilarious, you mean Modi made provisions for BJP's cash to be washed clean?

well, most of the currency is back so its good.
I think rest of them were those which we found in nullahs, garbage dumps etc etc.

This essentially means most black money hoarders managed to convert their cash from black to white. Demo was a blessing in disguise for them. Or maybe that was the plan all along, perhaps the biggest scam we've ever seen in India? That too while wearing a mask of a black money crusader?

We kept hearing about how black money holders would be prosecuted from the likes of @Soumitra @Tridibans etc, what's the progress fellas? @Soumitra in particular was going to use advanced data analytics to catch offenders.

 

[danger007]

I said this from Day 1, demonetization good for nothing.. loss to the economy is higher than the gains... when we consider 1000 note is big then what is the 2000 note..

 

[thesolar65]

No it didn't fail. Some wives of my friend's who are in Govt. service are still crying and cursing Modi. I have seen their tension. I pay roughly around four lakh as IT and they pay 50000/-. Yet they(MVIs) drive fortuners/mercs while I drive Innova and Dzire.

 

[jaunty]

I said this from Day 1, demonetization good for nothing.. loss to the economy is higher than the gains... when we consider 1000 note is big then what is the 2000 note..

Now wait for the twists from Modi-bhakts. For them, India jaye bhar mai, hum to bhakti karenge.

 

[pothead]

Now wait for the twists from Modi-bhakts. For them, India jaye bhar mai, hum to bhakti karenge.

Two dumbAsses slapping each other's bottom.
Everyone get away or they will start abusing more.

Premise of these dumbAsses is that since a person deposited the money, it's all white now.
When I read some of these dumbAsses posts, I wonder how they made it past college.

 

[jaunty]

i am a staunch supporter of reducing paper money for many various reasons and i thought that it was an excellent decision to remove the 1000 rupee note.

But i am not getting the argument here. Were some people against this move by the govt. If someone can summarize it for me, it would be appreciated.

It's a dead horse now, don't have the time or energy to flog it any more. But to give you a small idea how boneheaded the whole process was, they actually introduced a new 2000 rupee note to replace the 1000 rupee one, go figure!

 

[boxer_B]

It's a dead horse now, don't have the time or energy to flog it any more. But to give you a small idea how boneheaded the whole process was, they actually introduced a new 2000 rupee note to replace the 1000 rupee one, go figure!

Actually this was explained by a CA

http://www.abplive.in/india-news/wh...xplains-arvind-kejriwal-in-open-letter-446061

I am just quoting an excerpt.

Point 1

As you have stated in your Video that it took full 2 days for you to understand the various aspects of the Scheme and even after consultation with various Experts , you could not basically understand the Logic of why 2000 Rupee Notes were released instead of 1000 Rupee Note, I would like to make an attempt to tender my best possible logic ( Please enlighten me if I am wrong somewhere) as follows:

Sir, let us Simply take 2 Scenarios to understand the funda !

Scenario A : If as per your suggestion , Rs. 2000 Note are not issued but only New Rs. 1000 Notes are issued.

Lets say , for example Mr. X has Rs. 1,00,000/- black money in 100 Old Notes of Rs. 1000 each.

Mr. X divides those Rs. 1,00,000/- into 10 Equal Bundles, each comprising of 10 Old Notes of Rs. 1000 each and puts each Stack on a Table.
On Day 1 , in the morning Mr. X would deposit the first Bundle i.e. 10 Old Notes of Rs. 1000 valued at Rs. 10,000 into the bank and on same Day 1 in the Evening he would withdraw 10 New Notes of Rs. 1000 again valued at Rs. 10,000 and put it in the Locker in his house.

Now the real Game starts.
On Day 2 : Morning , Mr. X would deposit the second bundle of 10 Old Notes of Rs. 1000 valued at Rs. 10,000 kept on the Table. However in his books of accounts submitted to Income Tax Department, he will show that he has deposited the same 10 New Notes which was withdrawn on Day 1 : Evening ( which is actually still lying in the Locker of House )

On Day 2 : Evening , Mr. X would again withdraw 10 New Notes of Rs. 1000 valued at Rs. 10,000/- and keep the same in Locker . So at the end of Day 2, Mr. X has Rs. 80,000 on Table in Old Notes and Rs. 20,000/- in New Notes in Locker.

Now Day 3 will come in next week as limit of Rs. 20000 per week.

The same exercise shall continue till Day 10 and by the end of Day 10, Mr. X shall have no Old Notes and Rs. 1,00,000 in 100 New 1000 Rupee Note in the Locker.

However, to the Income Tax Department while presenting his cash book, Mr. X has shown that he was having only Rs. 10,000/- as black money initially ( i.e. one bundle of 10 Notes of Rs. 1000 ) and he has rotated the same Rs. 10,000/- by depositing it into Bank account in the morning and withdrawing it in the evening and again redepositing the same on next day and so on.

Thus, Mr. X has paid tax only on initial Rs. 10,000 whereas he has managed to convert all his Black money of Rs. 1,00,000 into new Notes.
This Modus operandi is called Peak theory i.e. theory of rotation of same money which is accepted by most of the High Courts and Tribunals. Revenue is also sometimes helpless to catch Mr. X because the above scenario can also occur in genuine cases where you withdraw money from bank to purchase something and then when you think that no good deal is available, you may again deposit the same money into your bank account and hence logically are not required to pay tax again.

Scenario B : Watch what happens when PM issues New 2000 Rupee Note instead of 1000….!
Mr. X deposits first bundle of 10 Old Notes lying on Table in the Bank on Day 1 : Morning and then he withdraws 5 New Notes of Rs. 2000 on Day 1: Evening and keeps it in locker.
Now on Day 2 : Morning when he goes to deposit second bundle of 10 Old Notes of Rs. 1000 each and wrongly shows the Income Tax Department based on cash book that he has redeposited the same money which was withdrawn on Day 1:Evening – Bingo !!!

He is caught red handed !! Because if AO enquires , the Bank slip on Day 2 submitted to bank shows deposition of 10 Notes of Rs. 1000 each whereas the Govt knows that Mr. X could never have withdrawn on Day 1 any note of Rs. 1000 because they were never Printed !!!!

The above examples are described to understand the concept of rotation of money and the fact that no tax is levied on redeposit .

 

[danger007]

Now wait for the twists from Modi-bhakts. For them, India jaye bhar mai, hum to bhakti karenge.

I spot on some already.. I don't know,why these fellows come up with weird logic.. What we have achieved with De-monetization..

 

[jaunty]

I spot on some already.. I don't know,why these fellows come up with weird logic.. What we have achieved with De-monetization..

That's what cult leaders do. They manage to brainwash a large section of the population and basically turn them into virtual slaves with absolute obedience. It takes a while for the cult to fade.

 

[TopCat]

Good.. India is full white. Do you have time to build a latrine now?

 

[jaunty]

Actually this was explained by a CA

http://www.abplive.in/india-news/wh...xplains-arvind-kejriwal-in-open-letter-446061

I am just quoting an excerpt.

Point 1

As you have stated in your Video that it took full 2 days for you to understand the various aspects of the Scheme and even after consultation with various Experts , you could not basically understand the Logic of why 2000 Rupee Notes were released instead of 1000 Rupee Note, I would like to make an attempt to tender my best possible logic ( Please enlighten me if I am wrong somewhere) as follows:

Sir, let us Simply take 2 Scenarios to understand the funda !

Scenario A : If as per your suggestion , Rs. 2000 Note are not issued but only New Rs. 1000 Notes are issued.

Lets say , for example Mr. X has Rs. 1,00,000/- black money in 100 Old Notes of Rs. 1000 each.

Mr. X divides those Rs. 1,00,000/- into 10 Equal Bundles, each comprising of 10 Old Notes of Rs. 1000 each and puts each Stack on a Table.
On Day 1 , in the morning Mr. X would deposit the first Bundle i.e. 10 Old Notes of Rs. 1000 valued at Rs. 10,000 into the bank and on same Day 1 in the Evening he would withdraw 10 New Notes of Rs. 1000 again valued at Rs. 10,000 and put it in the Locker in his house.

Now the real Game starts.
On Day 2 : Morning , Mr. X would deposit the second bundle of 10 Old Notes of Rs. 1000 valued at Rs. 10,000 kept on the Table. However in his books of accounts submitted to Income Tax Department, he will show that he has deposited the same 10 New Notes which was withdrawn on Day 1 : Evening ( which is actually still lying in the Locker of House )

On Day 2 : Evening , Mr. X would again withdraw 10 New Notes of Rs. 1000 valued at Rs. 10,000/- and keep the same in Locker . So at the end of Day 2, Mr. X has Rs. 80,000 on Table in Old Notes and Rs. 20,000/- in New Notes in Locker.

Now Day 3 will come in next week as limit of Rs. 20000 per week.

The same exercise shall continue till Day 10 and by the end of Day 10, Mr. X shall have no Old Notes and Rs. 1,00,000 in 100 New 1000 Rupee Note in the Locker.

However, to the Income Tax Department while presenting his cash book, Mr. X has shown that he was having only Rs. 10,000/- as black money initially ( i.e. one bundle of 10 Notes of Rs. 1000 ) and he has rotated the same Rs. 10,000/- by depositing it into Bank account in the morning and withdrawing it in the evening and again redepositing the same on next day and so on.

Thus, Mr. X has paid tax only on initial Rs. 10,000 whereas he has managed to convert all his Black money of Rs. 1,00,000 into new Notes.
This Modus operandi is called Peak theory i.e. theory of rotation of same money which is accepted by most of the High Courts and Tribunals. Revenue is also sometimes helpless to catch Mr. X because the above scenario can also occur in genuine cases where you withdraw money from bank to purchase something and then when you think that no good deal is available, you may again deposit the same money into your bank account and hence logically are not required to pay tax again.

Scenario B : Watch what happens when PM issues New 2000 Rupee Note instead of 1000….!
Mr. X deposits first bundle of 10 Old Notes lying on Table in the Bank on Day 1 : Morning and then he withdraws 5 New Notes of Rs. 2000 on Day 1: Evening and keeps it in locker.
Now on Day 2 : Morning when he goes to deposit second bundle of 10 Old Notes of Rs. 1000 each and wrongly shows the Income Tax Department based on cash book that he has redeposited the same money which was withdrawn on Day 1:Evening – Bingo !!!

He is caught red handed !! Because if AO enquires , the Bank slip on Day 2 submitted to bank shows deposition of 10 Notes of Rs. 1000 each whereas the Govt knows that Mr. X could never have withdrawn on Day 1 any note of Rs. 1000 because they were never Printed !!!!

The above examples are described to understand the concept of rotation of money and the fact that no tax is levied on redeposit .

You can spin it any way you want but it was introduced to lower the load on the printers which is just another manifestation of how ill-conceived and unplanned the whole exercise was.