Bank deposits may touch Rs 17 lakh crore by 30/12

[AZADPAKISTAN2009]

Best time for Surgical STRIKE

 

[GURU DUTT]

Best time for Surgical STRIKE

I wonder whats stopping you sir ji

 

[PlugnPlay]

Scrutiny will go completely digital. Of course, IT raids will only be done on big players, not the small guy.

It is already completely digital and yet their capacity is to screen 1% of tax payers.

There won't be any media attack on Modi for this. A lot of black money holders have been given relief by the govt. Saying that 50% will be penalized, 25% will be in interest free deposits for a few years and the remaining 25% is free to use. So lot of black money is coming into the banking system.

The problem is for people who generated wealth through corruption and other illegal means. For example, if you are a businessman who hid your profits, you will be fined and spared. But if you are someone dabbling in the black market and crime, then you are in trouble.

Since scrutiny will be completely electronic and automated, a relationship tree will be built based on your bank account usage. People you regularly transact with, followed by the people they transact with and so on will show how the money trail is.

This is wishful thinking.

Even today the guy who declared 13,000 Crores income turned up on CNN IBN and claimed that he was merely the guy who was contracted by politicians and businessmen to convert the black to white.

But since they have found a better means for doing so, they have left him in the lurch.

Just think about this. BJP has been in power in Gujarat for more than 20 years without break so pretty much all politicians named by him will turn out to be BJP men.

Are you really convinced there won't be a media trial ?

People smart enough to make black money has already found ways and means to make them white without drawing attention of the IT dept.

No, the effect of it will be long term. Modi will make it so you can't use large amounts of cash. You won't be able to withdraw large amounts from banks in cash, you won't be able to spend cash.

And hoarding will take a long time, by then that cash will be demonetized again and the system will go digital.

This again is wishful thinking and I would be glad if it turns out to be true.

But as a realist I doubt it.

You cannot demonetise the cash again as it will further erode the confidence on our currency. Each time we do it, we are announcing to the world that our currency should not be trusted.

Most hoarders would already have brought houses and gold, only 20% of guys would be keeping it as liquid cash.

Most would declare it as agricultural income and get it converted back to white.

 

[Crixus]

Earlier Pakistani members have monopoly in posting such threads in past some time Chinese members have surpassed them ....Congrats guys

 

[randomradio]

It is already completely digital and yet their capacity is to screen 1% of tax payers.

No, no. Right now the system is merely digital in the sense the data is stored in computers. Scrutiny is going to get an upgrade.

This is wishful thinking.

Even today the guy who declared 13,000 Crores income turned up on CNN IBN and claimed that he was merely the guy who was contracted by politicians and businessmen to convert the black to white.

But since they have found a better means for doing so, they have left him in the lurch.

Just think about this. BJP has been in power in Gujarat for more than 20 years without break so pretty much all politicians named by him will turn out to be BJP men.

Are you really convinced there won't be a media trial ?

The media trial won't be constructive, it will be destructive criticism. It won't affect Modi. It's because now Modi has the financial clout to make his vision work.

People smart enough to make black money has already found ways and means to make them white without drawing attention of the IT dept.

Bro, it's not that simple. If you make 1Cr every month, and you show the govt only 50L a month, now even if you've made your remaining 50L/month white, you will still get taxed with penalty. And this is once again in the system.

The IT department's work is yet to start.

This again is wishful thinking and I would be glad if it turns out to be true.

But as a realist I doubt it.

Most hoarders would already have brought houses and gold, only 20% of guys would be keeping it as liquid cash.

Most would declare it as agricultural income and get it converted back to white.

Property, gold, everything you can buy in large amounts will come under scrutiny. There will be restrictions in real estate holdings.

For example, the govt is now wringing out the black money by getting people to convert it to white. So even if all the money deposited is 100% of the currency, it won't make a difference. Now the govt knows your income, or say at least 80% of your income.

Next step is the govt will make everyone register their properties, like real estate, gold, stock etc. And this will be tallied with the white money that is taxed. If they don't match, obviously questions will be asked. And those who do not register their properties, the govt will confiscate them. This is how the govt is fighting black money. Demonetization is just the first step.

People can't hide anymore. The only ones who are safe for now are the ones who have managed to buy dollars. However those people will leave a paper trail, and the govt can get that also if they start signing bilateral deals with other countries, but this is long term and may not be as effective.

You cannot demonetise the cash again as it will further erode the confidence on our currency. Each time we do it, we are announcing to the world that our currency should not be trusted.

The 500, 1000 and 2000 notes will be permanently demonetized, without replacement. The biggest note will be either 50 or 100.

 

[Abba_Dabba_Jabba]

Best time for Surgical STRIKE

Already going on at LOC and Balochistan

On topic : The whole exercise was to tap the counterfeit currency in the market, this step will check the health of economy.