You need to know something here. See all these policies whatever is brought by govt, if really isn’t by ruling party mostly. These are drafted by planning commission and very experienced people based on research do draft it. If a bill is drafted, it’s drafted by the IAS & experts only.
Now the problem is how well it’s implemented. Congress for all I know is worse in implementing it. Post office digitalization, it wasn’t picking up speed. Even way before to catch black money they brought 26AS, i.e wherever high transaction is made PAN number is given which then 26AS traces. Good concept but it’s way worse, doesn’t track properly at all. Banks were also little loose, used to be a time they would simply open a bank account saying give me PAN later, never check with 15G form properly because it’s good for customer, they would get lots of deposit, they won’t catch TDS, benefit for both bank and customer. And the ITD were lazy really dumb ppl were made in charge.
All changed when Modi came to office. They got very strict. There is very less ways ppl can by pass tax now. And suprise suprise they AIS tracks all FD’s , heavy investment etc. Pretty sure few ppl got heart attack .
Eitherway whether bjp or congress, those thug life shady days are slowly coming to end
Because people of shadow economy are crazy. They don’t understand paying taxes , doing things legal way is far better than having a headache.
You see there is a big level of shadow economy in country. This is something I know from my roadside vendor guy that is a roadside clothes seller. Man just has a van.
So here is the thing, for first they usually have some money already which is black or borrow money from these loan sharks which is again black and buy goods from these wholesale merchants which is black. No GST anywhere just physical cash. He then sells it in roadside customer. He always has thick stack of cash in his pocket. He is a great seller and has done this for 19 years. Things like books of accounts, paying income tax, audit , GST he doesn’t know or pretends he doesn’t know . Also you need to know something here, the police already know every street vendor is reeling black money, so this has a deal. Bribe all the way. Otherwise this guy can’t even sell clothes on that spot or move somewhere else. A lot of drama and it’s crazy!
So with loads of physical cash in hand, one of the options is buying gold. That’s why they buy gold In kacha bill. Now if you put yourself in his shoes and asked me is it worth buying so much gold in kacha bill despite risk, I would probably say you have 2 options
Get caught by the ITD by sharing PAN number. Because for pucca bill people should give PAN which is the starting point. Because the moment they see high value transaction no ITR filed, No records of income and they send notice, pretty sure he can get arrested along with police that took bribe. I don’t know exactly but there would certainly be another big drama or if bribing the ITD would work😛.
Accept all the risks of buying of gold in kacha bill. Black money is black. None of above drama.
People always choose 2.
The thing you need to understand is , it’s lot easy to do all this with cash tender notes only. Because it’s easier to stay hidden from formal economy …ahem I mean ITD. That’s why govt is hell bent on reducing number of notes in circulation. They are tired of this shadow economy
Most of the black money is with politicians themselves. Elections are fought using this money. So no Government would want shadow economy to end. They’ll just keep pretending to be doing something to end corruption.
Kaam Karo ya na karo, karte hue dikho
No no , it’s changed. Well long story short it used to be like that. Along with no level of fudging books of account bribing CA & AO from party members and other crazy activities. They all thought about it because the police, other agencies know who are doing wrong and already have this list. So once a ruling party goes out of power and rival comes, rival starts investigation putting other ppl in jail. Maharashtra is great example out of this . Opening certain cases😛
So they became clever and either way everyone was tired of shadow economy including central bank. These days it’s like politician have deals. Like Modi goes to campaign in Delhi, his private flight funded and arranged by adani. After coming to power airports are given to adani. There is no corruption here! … Or you can say crony capitalism. Somehow special laws are made for certain people that support people who remain in power.
2000 rupee notes have nothing to do with black money, it is simply that largest notes will be used for stashing money (if not 2000, 1000rupee notes). 2016 demonetisation did nothing to curb black money and neither will this recent move. Gov really has to come up with better ways of tackling the black money problem than doubling down on a bad idea.
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Show me 2000 note and say now go.
