Currency Demonetisation and Future course of Indian Economy

Dasari · Post by **Dasari** » 23 Dec 2016 21:03

shiv wrote:Lousy evening. Traffic is dense, Eateries are full. Heck even my clinic was busy. Mucho signs of returning economic activity. Bored of traffic, my dog's dinner already delayed, I stopped over to meet my BiL - who is a paediatrician. He said that the DeMo phase was a bit down but not bad. He has been accepting PayTM, cheques and even promises to pay later online - some of which have not come. He applied for a PoS machine - but every bank has different rules. One bank demanded that he should have a current account - not savings. Another requirement was a trade licence and a TIN number that docs really do not need AFAIK - but he has one. He also said that many patients (parents of his patients) have managed to produce low denomination bills. he was accepting old notes till 10th Dec and then bandh.

My paediatrician brother in law also mentioned the case of many doctor friends of his who had cash stashes ranging from 25 lakhs to a staggering 6 crore. He did not know what they have done.

I hear similar stories in Vizag. But I heard they deposited and converted all their money. Don't know how they did but they think everything is safe. What they don't know is that they are entering a new unchartered territory. The risk of them getting caught is very high if IT men do their job post Dec 30.

raj-senthil · Post by **raj-senthil** » 23 Dec 2016 21:05

20:08 2 arrested for depositing Rs 34 crore in fake accounts: Two persons have been arrested by Crime Branch of Delhi Police for depositing black money worth Rs 34 crore in the fake accounts opened by them in the Naya Bazar branch of a private bank in New Delhi.

The Crime Branch has arrested two men Rajkumar Goel, 47, and Ranjit, 29, from Naya Bazar area of Chandni Chowk, said Ravindra Yadav, Joint Commissioner of Police (Crime).

Police received information that Goel is the mastermind of these illegal transactions, he said.

Both the accused were earlier involved in issuing fake bills against bank entries and were involved in theft of sale tax. After demonetisation was announced, they used the opportunity to transfer black money in the fake accounts and earn commission, said another officer.

"He had floated a number of fake companies wherein he used to convert illegitimate money into legitimate money through RTGS (Real Time Gross Settlement) transfers," the officer said.

Goel and Ranjit were called for interrogation and initially tried to mislead the team by not divulging facts.

"Later, they confessed that Ranjit, in connivance with Rajkumar, had opened an account in the name of Raj Enterprises at Kotak Mahindra Bank and the money was received by them in this account through RTGS. The account is used only for such transactions," said the officer.

Upender, who happens to be the cousin of Ranjit, is the proprietor of the account, he said.

"The accused Rajkumar had opened various accounts in the name of different firms like RK International, Swastik Trading, Sapna Trading, Mahalaxmi Industries, Shri Ganesh Enterprises, Delhi Trading Company, Virgo International etc. at Kotak Mahindra Bank, Naya Bazar.

"They had deposited unaccounted cash worth Rs 34 crores in the accounts," the officer said.

Two sets of pan cards, voter I-cards, Aadhaar cards, etc have been seized from them, he added. -- PTI

Rishi Verma · Post by **Rishi Verma** » 23 Dec 2016 21:17

shiv wrote:...One bank demanded that he should have a current account - not savings. Another requirement was a trade licence and a TIN number that docs really do not need AFAIK - but he has one...

There exists an opportunity for agents who have current accounts in banks and TIN number to provide swipe machines to docs such as the pediatrician (and paan walas and many others) that you mentioned. A guy can install and service POS machines for a nominal fee and wire transfer the amount immediately to doc with some small commission deducted.

Dipanker · Post by **Dipanker** » 23 Dec 2016 21:25

Akshay Kapoor wrote:Another report. Dads Malish wala took a few days off to go to his village and vote for municipal elections. Says he gets 10000 Rs for a vote. This time he got only 3000 Rs. Party said this is the max we can give. vote if you want to. If not vote for whomever you want. Party was BJP. He voted for them anyway.

3000 Rs in new notes ?

shiv · Post by **shiv** » 23 Dec 2016 21:34

Dasari wrote:
I hear similar stories in Vizag. But I heard they deposited and converted all their money. Don't know how they did but they think everything is safe. What they don't know is that they are entering a new unchartered territory. The risk of them getting caught is very high if IT men do their job post Dec 30.

Other than doctors who are related to property and political bigwigs I suspect most docs would simply have chickened out, deposited their money and agreed to pay tax + penatly

Deans · Post by **Deans** » 23 Dec 2016 21:37

asgkhan wrote:We sold property in white and bought in white. All documents pucca. Still they are harassing my 75 + old dad to come down to the IT office every other week, on one pretext or the other. Asking for multiple explanations and justifications. My dad is easily spooked and is $hit scared of the IT officers. When the first notice came, he panicked and was restless even after the interview.

Finally we got the message that they are looking for a fee to ignore us. Negotiations are on b/w the IT officer and the CA to something reasonable and acceptable to both of us.

The point I made in my previous post, is that post DeMo, the time of the IT guys can be spent far more productively negotiating with the
real BM holders. There would be a big opportunity loss if they harass honest taxpayers.

Deans · Post by **Deans** » 23 Dec 2016 21:40

Arjun wrote:
Neela wrote:Meanwhile from swanky offices in the USA ,Forbes wrote:

What India Has Done To Its Money Is Sickening And Immoral

yes, he's worried that many western governments seem a tad too interested in learning from India's move.

The same Forbes that said voting for Trump would be sickening and immoral ?

uddu · Post by **uddu** » 23 Dec 2016 21:44

Don't give any credibility to such reports. Earlier their chamchas used to write. When they failed miserably. they have to do the writing themselves.

Akshay Kapoor · Post by **Akshay Kapoor** » 23 Dec 2016 21:46

Dipanker wrote:
Akshay Kapoor wrote:Another report. Dads Malish wala took a few days off to go to his village and vote for municipal elections. Says he gets 10000 Rs for a vote. This time he got only 3000 Rs. Party said this is the max we can give. vote if you want to. If not vote for whomever you want. Party was BJP. He voted for them anyway.
3000 Rs in new notes ?

Good question. Will find out.

Akshay Kapoor · Post by **Akshay Kapoor** » 23 Dec 2016 21:50

Spoke to the husband of our maid in Pune. Drives an auto. 100 pct supportive. Has got himself a new phone and is learning Paytm. Tried to teach me too. Guy does not know English much. Said digital India everything going online. Uber driver had said that too. Before uber he used to be a car washer. There is a big revolution happening here.

Lilo · Post by **Lilo** » 23 Dec 2016 22:07

Neela wrote:Meanwhile from swanky offices in the USA ,Forbes wrote:

What India Has Done To Its Money Is Sickening And Immoral

Its actually penned by Steve Forbes the CEO of Forbes magazine.
I guess its time for Atlanticists in massa to make a stand with briturdia publications like Economist & FT against DeMo.

Leaving aside the irony of a dyed in the wool capitalist free marketeer lecturing a turd world nation about "morality",
I think he is more aghast that GOI can suddenly gain so much power to track the economic activity - by pushing cashless bigtime. It scares the living daylights off these guys that Govts can from now on actively keep track of tax evaders & fixers by keeping track of every market manipulating transaction - w/o acceding to their demands for less taxation first. All these demands for "flat tax rate" (i.e no progressive taxation) or low tax regimes & threatening dire consequences otherwise betray a mindset no similar to a lala in some patli gali of Chandini Chowk finally staring at a cashless future & intermittently going into bouts decrying DeMo in MC-BC terms .

pankajs · Post by **pankajs** » 23 Dec 2016 23:14

This Interesting bit ....

http://www.livemint.com/Politics/SCKLOA ... -Vara.html
Congress criticism of note ban is a self-goal: Modi

Analysts say that with demonetisation steadily gaining support from the public, Modi has gained more confidence to target the opposition for criticizing the move.

I thought support was ebbing because of cash crunch and no catch mota lotas ....

Interesting thought that Modi is slowly opening up that attack because he sees the mangos firmly behind him in-spite of the hardships.

Added later: In a rush to get the first bit here I did not finish the article. Here is the next para.

“The public now views the Congress and the BJP as two different poles of politics, with the former representing status-quoism and the latter standing for change. The public—especially the poor from rural areas—have reacted favourably to this decision, thus giving Modi the strength to target opposition leaders individually. Moreover, people’s mandate was visible in the local elections in Gujarat, Maharashtra and Chandigarh where demonetisation was a big election issue,” said A.K. Verma, a Kanpur-based political analyst and political science professor at Christ Church College.

The analyst is from Kanpur .... his insight would be most relevant for UP .... good to know.

Marten · Post by **Marten** » 23 Dec 2016 23:20

The cash situation is obviously much better now. The grumbles are reducing, and folks who are neutral are tending +. The ones I meet.

Media spend is usually a good indicator and this quarter, it had cratered. Is getting better now. Hope to see a full rebound in Jan for Sankranti. If there is any cash scarcity at that point, public sentiment will undoubtedly be negative. I think things are working out fine.

prasannasimha · Post by **prasannasimha** » 23 Dec 2016 23:25

I went to Mantri mall for a stroll and it was jam packed- so much for demonitization curbing spending!

pankajs · Post by **pankajs** » 23 Dec 2016 23:34

http://www.financialexpress.com/economy ... ap/484588/
In times of demonetisation, President Pranab Mukherjee says India is on the cusp of economic leap

Addressing the Centenary Year Celebrations of the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) in Hyderabad, President Mukherjee said, “India is on the cusp of a leap towards a higher economic growth trajectory. A decade after the 2008 global economic crisis, major economies of the world are still limping. But, the Indian economy is growing fast.”

<snip>

President Mukherjee’s statement comes at a time when the Centre led by Prime Minister Narendra Modi is facing an all-out attack from the opposition and several “reputed” economists for demonetising old Rs 500 and Rs 1000 currency notes.

Dasari · Post by **Dasari** » 24 Dec 2016 00:33

Cash situation is improving. At this rate by end of Feb, it would be back to normal, the way it was before Nov 8th. However overwhelmingly people are believing that something good is going to come out of this hardship. Nobody defined what this is.

Some section think that this will result into punishing some big-wigs and putting them in jail, which may not happen directly or as per everybody's satisfaction. So Govt needs to explain this in simple terms as nobody understands if govt says that 2 lakh crores of BM got extinguished or they recouped additional Rs 50000 crores of back taxes.

As somebody suggested they need to make sure all the money recovered reaches the poor and let them know in a creative ways where it is coming from. This marketing is necessary to have their trust and for govt to embark on next set of reforms.

Sicanta · Post by **Sicanta** » 24 Dec 2016 00:38

India's growth to stay unchanged at 7.1% in 2017: Nomura

http://www.business-standard.com/articl ... 675_1.html

200,000 farmers have mobile banking account now: Cooperative Banks body

http://www.business-standard.com/articl ... 839_1.html

"We believe by the end of December, another 50,000 farmers will be added to the mobile banking platform," said Subhash Gupta, chief executive of the Federation. The body represents around 1,600 urban cooperative banks and 50,000 cooperative credit societies across the country.

Cooperative banks, Nafed, Nabard, Gujarat Cooperative Milk Marketing Federation (GCMMF) and other agriculture agencies and institutes have been organising farmers training camps across the country on cashless transactions, said a senior official of the department of agriculture in the central government. The data given earlier on the number of farmers getting access to cashless transactions are the department's estimate.

Nabard's deputy managing director, H R Dave, says their aim is to give RuPay cards to 34 million farmers. "Generally, farmers buy seeds, fertiliser, and other farming related things on cash or credit. By providing RuPay cards, hey will also be able to go cashless soon," he said.

pankajs · Post by **pankajs** » 24 Dec 2016 00:53

http://www.thehindubusinessline.com/mon ... 438707.ece
Surge in non-cash transactions may give RBI room to reduce currency in circulation

Kolkata, December 21:

Nearly one-and-a-half months after demonetisation, banks are seeing a huge spike in non-cash transactions.

Sources said this might give the Reserve Bank of India probable room to reduce circulation of currency notes.

While official figures on the rise of non-cash transactions to the share of total transactions are not yet available, a senior official of a PSU lender expects the current ratio at nearly 25 per cent.

Previously (till November '8), out of every 100 transactions made at banks, not more than 10 used to be through alternate formats. Now, this number could be as high as 20-25.

Dasari · Post by **Dasari** » 24 Dec 2016 01:05

This is another news supporting the growth of cashless transactions. In less than 3 weeks, the electronic payments went from Rs65000 to more than Rs 3 crores per day.

Demonetization pushes electronic toll collection by 540 times

NEW DELHI: Demonetisation of old Rs 500 and Rs 1,000 notes has pushed toll payment through electronic mode rather than in cash, something the highways ministry failed to do in the past two years. In the past 20 days, toll collection through electronic mode increased by at least 540 times, according to NHAI data.

Even the sale of FASTags, a common tag that can be used across all toll plazas on NHs, has increased from only 1,462 on December 1 to 5,635 on December 20. The average daily sale of these tags is around 3,223. Since its launch two years back, the banks responsible for popularising the use of these tags had sold only 1.08 lakh tags till November 30. The toll collection through electronic mode went up from Rs 65,897 on December 3 to nearly Rs 3.58 crore on December 21, NHAI said.
"The numbers will increase significantly next month. Now four banks - ICICI, Axis, IDFC and SBI - are selling tags. They will reach out to bulk buyers such as truck fleet owners and cab operators in a big way. What we need to do is increase the number of lanes that can process the tags to deduct toll," said an NHAI official.

Though at present, highway operators are also collecting user charges using point of sale machines, the aim is to convert more people to use FASTags, which enable vehicles to pass through toll lanes without stopping. According to estimates, toll plazas in India will be congestion-free when 60-70% users pay toll through electronic mode.

The proposal of large scale use of smart tags was first mooted in June 2010 and a pilot run was conducted in August 2012. But it did not get enough attention until recently.

rgosain · Post by **rgosain** » 24 Dec 2016 01:53

I doubt whether anyone outside of the Lutyen's circuit would recognise Steven Forbes if he fell on them.
Forbes, The Economist etc strident denounciation of the currency changes afoot in India, bring to mind the criticisms that communists used to level against those disagreed with them in the past.
Is it any wonder that Forbes chose to publish his screed against India, on the day that Deutsche Bank and Credit Swisse were fined billions by the US authorities. Where was Forbes when bonuses were being dishes out to the credit agencies, who manipulated the markets, before the sub-prime crisis hit. If ever there was a smoke-screen, Forbes is part of it. His comparison of India today, to Nazi Germany and the Communists, only devalue his thesis far more that the Rupee has managed.

KLNMurthy · Post by **KLNMurthy** » 24 Dec 2016 02:44

MohdKav wrote:Axis Bank, Coperative Bank, RBI employee caught in Karnataka.

Indian xyz caught by Indian institutions doing corruption. Ergo I proved India is corrupt.

If you respond that my reasoning skills fall short of the mark, then I'll shoot back that you are a flat earther and I am Galileo.

I win.
Yay.

KLNMurthy · Post by **KLNMurthy** » 24 Dec 2016 02:49

Karan M wrote:So Adux aka MohdKav is on another ban. Chap is from a left-INC background and has frequently bragged in the past about his deep connections etc. Of course, every reason to spread FUD about current demon drive.

Now he is a martyr.

SBajwa · Post by **SBajwa** » 24 Dec 2016 05:25

by srikumar
The only thing I can come up with is that people (homes, restaurants) now buy exactly what they need for exactly 2-3 days i.e. before they get spoilt, and use the vegetables. Hence the wastage/spoilage is reduced.

The other possibility is that the news about vegetables not selling is not true at all (or maybe was temporary e.g. for a 2-3 days).

And really, if indeed the vegetables are not selling, it points to a food surplus, which is something to celebrate/brag about, for a country where malnutrition is still an issue among many sections of population.

The real reason that there is a surplus of vegetables is that the hoarders do not want to deal with black money and are thus dumping their produce. Expect similar things to happen in other items (dal,rice,wheat,etc)

UlanBatori · Post by **UlanBatori** » 24 Dec 2016 05:54

"Says he gets 10000 Rs for a vote."
Wow! How many times does his vote get cast I wonder.

Karan M · Post by **Karan M** » 24 Dec 2016 07:18

What does of the forum make of fixed income investment options post demonetization and the likely drop in interest rates @ FDs etc?
Are ultra short term debt funds a viable option?
Liquid funds and USDF above both seem to be trading at crazy highs now (if i am not mistaken). Liquid funds would have to go shopping again for new fixed income investments in Jan-Feb and their returns would drop, in turn their NAV would drop, in turn those who bought high (as now) would suffer.
Ultra short term debt funds & Income funds seem better options - though riskier, because they might lock in longer term investments & income funds might benefit from falling interest rates on g-sec (i don't quite understand how that works, is it because they become more viable in the consumer eye (retail and F/DII) as fixed income streams and hence people flock to them, which in turn means these funds are more exposed to corporate debt and may take more risky plays to justify their NAV). Seems like one giant perception driven perpetual motion machine? Circular in nature? What am I missing (please explain to a layman

).

Karan M · Post by **Karan M** » 24 Dec 2016 07:24

The only clear advantage of debt funds seems because of indexation. Hold for 3 years and reduce acquisition costs by the CII inflation rate and pay less tax on the interest (as a result). However, by buying balanced funds (which have a debt component) and then holding for 3-5 years may be a simpler option? Equity is also taking a hammering. But that may indicate a good time to enter the market. But its in the best interest of AMCs to claim so, correct?
I read an article which basically said hold on, further correction likely. So far, equity down, debt funds up is what my novice eyes see, when I do get the time.

Dasari · Post by **Dasari** » 24 Dec 2016 07:41

Govt should publicize PMGKY amnesty program by creating lot of scare among BM hoarders. I'm not sure enough information and threats are sent through media. For summary this is what the program entails:

Declared before Dec 30
1. Declare BM before Dec 30 and pay by old notes before Dec 30 or through Cheque/RTGS transfer after Dec 30 ( but before 31st March 2017)

- 30% tax
- 33% surcharge on tax
- 10% penalty on income
-----------
50% total

of the remaining 50% deposit 25% in PMGKY for four years with no interest.

Failed to declare before Dec 30thc

2.1 Files returns by March 31, 2017 with back taxes
- 60% tax
- 25% surcharge on tax
- 3% cess on tax & surcharge
- 10% penalty on tax
-----------
83.25 % total

2.2 Defiant but caught through search/seizure

Same as 2.1 above plus penalties taking the total tax past 100% and up to 200%

shiv · Post by **shiv** » 24 Dec 2016 08:24

While the cash in hand situation seems to be improving let me speculate on ATMs.

A couple of days ago I saw a comment by a finance bigwig that ATMs "may take longer" because they are privately managed. I think there is more than meets the eye wrt ATMs

First, ATMs have been kept more or less shut by the excuse that banks need the cash to hand to their own customers. Next there is the issue of recalibration - which may be totally dependent the exact policy and exact proportion of notes that the RBI will allow. For the past decade RBI has allowed ATMs to vomit out >80% high denomination notes. I suspect this will change, or at least this will have to change.

Before it changes, the recalibrating folks will need to know how many trays will take 2000, how many 500 and how many 100. And I suspect that the government is deliberately silent on this and will remain silent till well after Dec 31s - because if ATMs were filled up very soon a lot of deposited cash would simply be sucked out without trace.

It is difficult to deny that there is an element of coercion needed in forcing down change. It would probably be silly to dish out ATM notes in the same old high proportions of high denomination notes and also allow large amounts to be withdrawn per transaction from an ATM. Allowing 20,000 to bu sucked out of an ATM in one go may be something that all of us have done on occasion but that is higher than a month's wages of most Indians and taht limit is squarely aimed at the wealthy and convenient for a cash economy of people who spend in 500s and 1000s.

This will need to change.

Kakkaji · Post by **Kakkaji** » 24 Dec 2016 08:33

Karan M wrote:What does of the forum make of fixed income investment options post demonetization and the likely drop in interest rates @ FDs etc?
Are ultra short term debt funds a viable option?
Liquid funds and USDF above both seem to be trading at crazy highs now (if i am not mistaken). Liquid funds would have to go shopping again for new fixed income investments in Jan-Feb and their returns would drop, in turn their NAV would drop, in turn those who bought high (as now) would suffer.
Ultra short term debt funds & Income funds seem better options - though riskier, because they might lock in longer term investments & income funds might benefit from falling interest rates on g-sec (i don't quite understand how that works, is it because they become more viable in the consumer eye (retail and F/DII) as fixed income streams and hence people flock to them, which in turn means these funds are more exposed to corporate debt and may take more risky plays to justify their NAV). Seems like one giant perception driven perpetual motion machine? Circular in nature? What am I missing (please explain to a layman ).

If the interest rates are expected to fall, then you should buy longer terms debt funds. You buy ultra short term debt funds when the interest rates are expected to rise.

The logic is this: When interest rates fall, then the new bonds that are issued will pay a lower interest rate, whereas the previously issued bonds still pay the older, higher interest rate at which they were issued. Therefore, the older bond pays more than the newer bond of same face value. Therefore, the investors are willing to pay higher to own the older bond and thus bid up its price to the point where its yield matches that of the newer bonds. The reverse happens when the interest ates go down.

Looks like due to DeMo, interest rates are likely to go down and bond prices likely to rise in India.

Whereas in the US, due to rate hikes planned by the Federal Reserve, interest rates are likely to go up and bond prices go down.

hanumadu · Post by **hanumadu** » 24 Dec 2016 09:04

TIMES NOW ‏@TimesNow 2h2 hours ago
600 Jan Dhan A/Cs, which showed over ₹10cr deposits post demonetisation, under I-T lens in Bihar, J'khand for suspected naxal links (PTI)

hanumadu · Post by **hanumadu** » 24 Dec 2016 09:06

shiv wrote:. Allowing 20,000 to bu sucked out of an ATM in one go may be something that all of us have done on occasion but that is higher than a month's wages of most Indians and taht limit is squarely aimed at the wealthy and convenient for a cash economy of people who spend in 500s and 1000s.

This will need to change.

In the US, there is a daily limit of 300 to 350$ on withdrawal from ATMS. An equivalent Indian sum would me 3000 to 4000 rupees.

Dipanker · Post by **Dipanker** » 24 Dec 2016 09:30

Nigerian man carrying Rs 53 lakh in new notes detained at Delhi airport

A Nigerian national travelling to Coimbatore was detained at the Delhi airport on Friday morning, when he was found carrying a large stash of old and new currency notes. Airport sources said the passenger reached terminal Terminal 1D of the Indira Gandhi International airport at around 2:35 am to board his Indigo flight to Coimbatore.

“During his check in, approximately Rs 53.78 lakh in new currency notes(500 and 2000) and Rs 4.29 lakh old currency notes(1000 and 500 ) were detected. His flight to Coimbatore was scheduled to depart at 6:40 am. He was allowed to board flight by the Air Intelligence Unit of Income Tax,” said a CISF official.

chetak · Post by **chetak** » 24 Dec 2016 09:31

Here's someone who is running an independent country of her own.

she also had nasty things to say about the sacking of the TN chief secretary whose money laundering links and hafta racket had confirmed connections to the waste bengal currency mafia

SaraLax · Post by **SaraLax** » 24 Dec 2016 09:36

Karan M wrote:The only clear advantage of debt funds seems because of indexation. Hold for 3 years and reduce acquisition costs by the CII inflation rate and pay less tax on the interest (as a result). However, by buying balanced funds (which have a debt component) and then holding for 3-5 years may be a simpler option? Equity is also taking a hammering. But that may indicate a good time to enter the market. But its in the best interest of AMCs to claim so, correct?
I read an article which basically said hold on, further correction likely. So far, equity down, debt funds up is what my novice eyes see, when I do get the time.

Well .. this is OT but there is one more type of 'Equity' Fund ... the Arbitrage type funds. They are a very interesting type of fund and would look suitable if you want something beyond FDs to hold your money for just about more than a year and still save on taxes !.

Deans · Post by **Deans** » 24 Dec 2016 09:40

I've read with interest, the posts on doctors and their acceptance (or reluctance) of digital payments. My family visits a prominent doctor in Bangalore, who like me, is from a fauji family. While most of his patients pay in cash, he reports that income in his returns. He has however been encouraging patients to pay digitally, not because of DeMo, but ever since he discovered that his receptionist/ cashier had been pocketing cash, by overcharging patients !
Variants of this exist throughout the retail space, particularly for services or restaurants (where physical goods cannot easily be matched with payment received) . Cashiers routinely under-bill for friends, or overcharge and pocket the difference - when cash payment is involved.

Sachin · Post by **Sachin** » 24 Dec 2016 09:48

Rs 1 crore in new notes seized in Bengaluru
Officials from the Karnataka and Goa Income Tax Directorate seized Rs 1.15 crore in cash, including Rs 1.07 crore in new Rs 2000 notes, from the residence of a transport businessman at Anekal taluk in south Bengaluru Friday.
....
I-T officials also reported finding Rs 47.74 crore of undisclosed income from seven jewellers and bullion merchants in Bengaluru.

Currency exchange: I-T dept nabs 5 in Kochi but fails to find evidence...
Five persons, including a woman taken into custody ...are likely to be released due to 'lack of evidence', IT sources said....

SaraLax · Post by **SaraLax** » 24 Dec 2016 09:53

Somehow BM Holders depositing chunks of their BM cash into banks through money mules & helpful bank managers via SB A/C's, CA A/C's, FD's, Jan Dhan A/C's and etc - is being touted as a defeat of the DEMONETIZATION exercise by most of the media (which is a big lie) and same lie is spread around by clueless common man.

Stupid media people ... often corrupted easily by money from vested BM Holding folks to spread fud around the entire country through their useless newspapers & TV channels !.

Now wait for the FIU units of Finance Ministry, ED, IT & CBI to come into the picture to look at all these Bank A/C's that are suddenly bulging big with money. A/C Holders will be called in for explanation and will have to provide proofs of their sudden 'incomes' !. Actual owners of the BM will get pulled in .. when one of those A/C holder pipsqueak squeals out the truth of the big money deposit in his A/C.

This scenario of BM money flooding into the banks as broken down chunks of money through numerous bank a/c's held by various people - is the most probable scenario that would have been gamed by Modi's team that planned for this DEMONETIZATION exercise !. Remember again .. it is the central government that is in advantage due to the suddenness of the announcement of DEMONETIZATION and it is all these BM Holders who are flailing around in panic on how to save their BM stash from getting taxed at 50% rate and reacting in panic mode by committing additional blunders which would have been gamed by the DeMo team & will be detected easily by the Central Government folks (just that there would be lakhs of such transactions to be analysed !! and will take time to be completely handled).

Karan M · Post by **Karan M** » 24 Dec 2016 10:02

Thanks Kakkaji and SaraLax.

shiv · Post by **shiv** » 24 Dec 2016 10:03

Deans wrote:I've read with interest, the posts on doctors and their acceptance (or reluctance) of digital payments. My family visits a prominent doctor in Bangalore, who like me, is from a fauji family. While most of his patients pay in cash, he reports that income in his returns. He has however been encouraging patients to pay digitally, not because of DeMo, but ever since he discovered that his receptionist/ cashier had been pocketing cash, by overcharging patients !
Variants of this exist throughout the retail space, particularly for services or restaurants (where physical goods cannot easily be matched with payment received) . Cashiers routinely under-bill for friends, or overcharge and pocket the difference - when cash payment is involved.

What a lot of people don't realize is that for self employed doctors the IT dept allows a great number of routes to reduce the tax burden. But this was not so just 20-25 years ago. Doctors really should employ a good CA or auditor who will tell them what they can do legally to keep taxes to a minimum.

kvraghav · Post by **kvraghav** » 24 Dec 2016 10:05

Firstly, demonetisation has not changed bribe taking. It will have some effect if even 2000 and 500 is withdrawn, gold and land made strict.
Karnataka was not like this 10 years before. It is all after this IT thing started that real estate zoomed and BBMP started leaching bigtime. The BBMP was a commission agency only before where every contract had a 28 percent cut.