India's Demonetisation - 3-4 Lakh Crore Untaxed Cash Deposited, IT Department To Investigate

[jaunty]

Everyone needs to be on real platform. It depends upon the way IT dept scrutinises the deposits. It will take years and before any tangiable benefits come, the money might change hands again. IT dept will take more than 3-4 years alone to send deposits and recovering from them will tell God know when

Don't talk facts please, facts have no place in headline management. I can guarantee that nothing will come out of it, nothing. It is very simple really. No large black money holder is stupid enough to deposit unaccounted money directly to his account. These 3-4 lakh crores (even if we are to take this amount at its face value which is a big if) is spread across crores of accounts. Are they going to freeze all those accounts? People will withdraw money as soon as there is enough cash in 2-3 months before they could even identify those accounts. But hey, you need headlines like this to prove that it was indeed a master stroke.
@SarthakGanguly

 

[SarthakGanguly]

Don't talk facts please, facts have no place in headline management. I can guarantee that nothing will come out of it, nothing. It is very simple really. No large black money holder is stupid enough to deposit unaccounted money directly to his account. These 3-4 lakh crores (even if we are to take this amount at its face value which is a big if) is spread across crores of accounts. Are they going to freeze all those accounts? People will withdraw money as soon as there is enough cash in 2-3 months before they could even identify those accounts. But hey, you need headlines like this to prove that it was indeed a master stroke.
@SarthakGanguly

Come on.I have been saying from day one - it's all Modi's fault. And bhakts.

 

[Robinhood Pandey]

Come on.I have been saying from day one - it's all Modi's fault. And bhakts.

and the bigger fault is to try and change the status quo

btw why are we telling all this to Mr. know it all ???

 

[SarthakGanguly]

and the bigger fault is to try and change the status quo

Seriously. Why try and change things when they are almost perfect anyway. Corruption was negligible before this move, and see what has happened now.
Thousands of youngsters in Kashmir are unable to meet their basic needs.

 

[egodoc222]

Don't talk facts please, facts have no place in headline management. I can guarantee that nothing will come out of it, nothing. It is very simple really. No large black money holder is stupid enough to deposit unaccounted money directly to his account. These 3-4 lakh crores (even if we are to take this amount at its face value which is a big if) is spread across crores of accounts. Are they going to freeze all those accounts? People will withdraw money as soon as there is enough cash in 2-3 months before they could even identify those accounts. But hey, you need headlines like this to prove that it was indeed a master stroke.
@SarthakGanguly

That is the first stage of delusion....

 

[911]

That is the first stage of delusion....

First they predict doom and gloom. Then starts working towards it to prove it.

 

[jaunty]

That is the first stage of delusion....

Fine, I'm delusional but why don't you give us a rundown of how the govt is going to recover this "3-4 lakh crore" black money? First what is it actually? 3 lakh crore or 4 lakh crore? That itself clearly suggests that it is just an estimation. I have given you my reasons, all I have got in response is sarcastic BS and personal attacks. It appears that is the best you guys have to offer. I am all ears, tell us more.

 

[Rajaraja Chola]

Don't talk facts please, facts have no place in headline management. I can guarantee that nothing will come out of it, nothing. It is very simple really. No large black money holder is stupid enough to deposit unaccounted money directly to his account. These 3-4 lakh crores (even if we are to take this amount at its face value which is a big if) is spread across crores of accounts. Are they going to freeze all those accounts? People will withdraw money as soon as there is enough cash in 2-3 months before they could even identify those accounts. But hey, you need headlines like this to prove that it was indeed a master stroke.
@SarthakGanguly

Oddly I do support demonitisation. But I am doubtful of the recoveries who number are boasted to the tune of lakhs of crores. I believe this step will take us one step into inclusive cashless economy, though to spread to all parts of India it might take nearly 10 years. We cant expect any big arrests from this, as there is clause where one can hide identity after payable of fine even if caught.
Scrutinising accounts. I dont know if IT dept was even prepared. They should have employed the services of any MNC's before this was stuck just to do automatic notices, check discrepancies etc etc. Our programmers are good enough to do it very well.

 

[jaunty]

Oddly I do support demonitisation. But I am doubtful of the recoveries who number are boasted to the tune of lakhs of crores. I believe this step will take us one step into inclusive cashless economy, though to spread to all parts of India it might take nearly 10 years. We cant expect any big arrests from this, as there is clause where one can hide identity after payable of fine even if caught.
Scrutinising accounts. I dont know if IT dept was even prepared. They should have employed the services of any MNC's before this was stuck just to do automatic notices, check discrepancies etc etc. Our programmers are good enough to do it very well.

I admire your optimism but unfortunately I don't share your enthusiasm. IMO pushing cashless economy through demonitisation is complete bonkers, nor is it going to work in a substantial manner. It's like denying someone access to his money temporarily and then forcing him to go digital. It will never work. As soon as he has access to cash, he will go back to his own routines again. Cashless transactions will increase over time organically as the economy grows (it has increased many folds in the last 5-6 years) and more and more people have access to plastic money/other means. I am all for incentivizing cashless transactions, but demonitization to increase cashless transactions makes no sense to me. In any case, it was not their original goal when they declared demonitization. It was an afterthought, a deflection mechanism. The original stated objectives have more or less failed already. Let's not even talk about the losses from the disruption of the economy.

 

[AZADPAKISTAN2009]

What about the GOLD income hidden no wives jewlery

 

[RISING SUN]

It is obvious that black money has entered the system. What is new in it?

It will be taxed now, that's the difference.

 

[Jugger]

The huge tax downpour will fill the govts coffers, this will finance the huge infrastructure development projects needed in India.
And this will also finance the huge Shivaji statue in Maharashtra

 

[Rajaraja Chola]

I admire your optimism but unfortunately I don't share your enthusiasm. IMO pushing cashless economy through demonitisation is complete bonkers, nor is it going to work in a substantial manner. It's like denying someone access to his money temporarily and then forcing him to go digital. It will never work. As soon as he has access to cash, he will go back to his own routines again. Cashless transactions will increase over time organically as the economy grows (it has increased many folds in the last 5-6 years) and more and more people have access to plastic money/other means. I am all for incentivizing cashless transactions, but demonitization to increase cashless transactions makes no sense to me. In any case, it was not their original goal when they declared demonitization. It was an afterthought, a deflection mechanism. The original stated objectives have more or less failed already. Let's not even talk about the losses from the disruption of the economy.

It was not. But they needed to force the people to jump to cashless bandwagon. The method might not have backfired, had the government prepared well in advance by printing enough currencies in the first place.
Again if we think govt will recover 3 -4 lakhs crore in Black money then its going to be impossible.

 

[Soumitra]

Are they going to freeze all those accounts? People will withdraw money as soon as there is enough cash in 2-3 months before they could even identify those accounts.

It is well known that Jan Dhan accounts are being used to try and launder money

http://www.livemint.com/Industry/Tq...-Dhan-account-deposits-double-to-Rs87000.html

To counter this Yes the govt is putting limits to withdraw the money

http://timesofindia.indiatimes.com/...-to-Rs-10000-a-month/articleshow/55698624.cms

Suppose I have 25 Lakh cash black money and I deposit it into 10 accounts (2.5 L / account) I will not be able to withdraw more than 1 Lakh. The govt is already scrutinizing the source of deposits in these accounts

http://timesofindia.indiatimes.com/...han-account-deposits/articleshow/55389794.cms

Using this route will still increase your chances of being caught

 

[jaunty]

It is well known that Jan Dhan accounts are being used to try and launder money

http://www.livemint.com/Industry/Tq...-Dhan-account-deposits-double-to-Rs87000.html

To counter this Yes the govt is putting limits to withdraw the money

http://timesofindia.indiatimes.com/...-to-Rs-10000-a-month/articleshow/55698624.cms

Suppose I have 25 Lakh cash black money and I deposit it into 10 accounts (2.5 L / account) I will not be able to withdraw more than 1 Lakh. The govt is already scrutinizing the source of deposits in these accounts

http://timesofindia.indiatimes.com/...han-account-deposits/articleshow/55389794.cms

Using this route will still increase your chances of being caught

Actually deposits in Jan Dhan accounts are hardly significant when you compare it with the total value of old currencies. Till the first week of December, the total volume of deposits (after demonitisation) in Jan Dhan accounts was merely about 30,000 crore. I am sure many of these accounts were used to deposit black money but in the larger context that is a very small amount. If you subtract the genuine deposits from 30,000 crore I am not sure if it is even worth going after 25 crore Jan Dhan accounts.

Edit: the livemint article you posted says that about 44,000 crore have been deposited in 45 days. The numbers are consistent with the above data.

http://economictimes.indiatimes.com...s-hardly-significant/articleshow/55792611.cms
http://www.ndtv.com/india-news/jan-dhan-deposits-stabilise-get-rs-1-487-crore-in-7-days-1633957

Also the deposit limit in Jan Dhan accounts is just 50,000 rupees. So even with a 10,000 a month withdrawal limit the money will be out of the system before the already stretched IT department gets to examine thoroughly.

It is also worth mentioning that Jan Dhan accounts are owned by the extremely poor class who don't have a bank account otherwise. Suppose I am one of them and I somehow managed to deposit 40,000 rupees in my account. What is the IT department going to do exactly? Almost none of those people have any genuine employment contract. Are you going to jail them, drag them to courts? Send IT notices for 40,000 rupees? It is next to impossible to do anything about it.