WHAT HAPPENED DURING DEMONETISATION?


The Citizens and the Politicians were totally confused, during the Demonetisation.  There were everyday RBI and CBDT notifications.  The Government went berserk and taken aback with the ways,  the money launderers, black money holders and criminals  tried to get their ill gotten money into the system by depositing the CASH into some bank account.

The wily PM, had outsmarted, even the top politicians within his own circle and leave alone the small fishes.

90% of the 15 lakh crores is back into banks.  Now produce the account.

Everybody is questioning the way the demonetistion executed by the Government, as it is not a regular affair and it is conducted once in 50 or 60 years.

But, the PM had GUTS to challenge and  executed it.  There were people standing in the Q for long time and the labourers felt the trouble most.  The small vendors across the town and villages had a tough time, but, We the Indians, are adaptable to any circumstance and have shown that the citizens accepted it and have come out of it.

90% of 15 lakh crores currency is back in bank chest and the release from the bank is only about 5 lakh crores and the economy is still running with slight handicap.

Now, all those, who have deposited the old currency have to come out with accounts to withdraw the same and the same will be OUT of the Banks in about 3 months, back in circulation, producing Taxes to the Government and the illegal transaction will be reduced by 50% to 75%.

The simple plan as we assume is JUST TO BLOCK the cash and bring it into the account and then begin the investigation into GOLD HOLDINGS, STOCKS AND SHARES AND PROPERTIES.

Now, Gold,Stocks and Shares and Properties cannot be easily bought as every rupee is accounted for.

The New Year will begin with the Gold, Shares and Stocks and Property investigation.

The common man felt the hardship for 50 days and will not end right away.  It might take atleast 6 months to 1 year to recover from this onslaught on the economy.

WE ARE NEITHER IN SUPPORT NOR AGAINST DEMONETISATION, THE ABOVE WRITE UP IS THE ACTUAL SCENARIO AS SEEN AND FELT.

 

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The daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017,from the existing ₹ 2,500/- to ₹ 4,500/- per day per card. -RBI


BI/2016-17/204
DCM (Plg) No. 2142/10.27.00/2016-17

December 30, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/
Regional Rural Banks / Urban Cooperative Banks/ State Cooperative Banks
District central Cooperative Banks

Dear Sir,

Cash withdrawal from ATMs – Enhancement of daily limits

Please refer to our circular DCM (Plg) No. 1424/10.27.00/2016-17 dated November 25, 2016 on “Withdrawal of cash from bank deposit account – Relaxation”.

2. On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹ 2500/- to ₹ 4500/- per day per card. There is no change in weekly withdrawal limits.Such disbursals should predominantly be in the denomination of ₹ 500.

3. The relaxation of withdrawal limits as enabled by our circular DCM (Plg) No. 1437/10.27.00/2016-17 dated November 28, 2016 remains unchanged.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

The President of India approves the Promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 today (30-12-2016)


The Ordinance is a follow-up to the decision taken by the Government of India to cancel the legal tender character of the existing series of banknotes, as on November 8, 2016, in the denominations of Rs.500 and Rs.1000 (Specified Bank Notes-SBNs) in circulation.

The main objectives of the Ordinance are (i) to provide clarity and finality to the liability of the Reserve Bank of India and the Government of India for the SBNs; (ii) to provide an opportunity to those persons who were unable to deposit the SBNs within the time provided; and (iii) to declare holding, transferring or receiving SBNs as illegal, with provisions for penalty for contravention of any of the provisions of the Ordinance.

This decision follows a number of steps taken to eliminate the menace of unaccounted money in the economy including setting up of a Special Investigation Team (SIT); enacting a law regarding undisclosed foreign income and assets; amending the Double Taxation Avoidance Agreements between India and Mauritius and India and Cyprus; reaching an understanding with Switzerland for getting information on Bank accounts held by Indians with HSBC; encouraging the use of non-cash and digital payments; amendments to the Benami Transactions Act; and implementation of the Income Declaration Scheme 2016. It is a move in line with the government’s initiatives to curb unaccounted money in the system, money laundering and tax avoidance.

As on 30th December, 2016 a part of the Specified Bank Notes (SBN) have come back to the Reserve Bank of India and these are now a part of the formal financial system, increasing the deposit base of the banks and improving their ability to lend. People have also embraced and are continuing to adopt different digital forms of payments. The ecosystem of digital payments infrastructure is continually being improved and strengthened to make it easier for more people to adapt to this form of payment.

As was notified on 8th November, 2016 those persons who were unable to exchange or deposit the SBNs in their bank accounts on or before 30th December, 2016 shall be given an opportunity to do so. Accordingly, this facility has been granted to all Indian citizens who were outside India from 9th November, 2016 to 30thDecember, 2016 to tender these SBNs at the specified Issue Offices of RBI until 31st March, 2017. For those citizens of India who are not resident in India, this facility would be available till June 30, 2017 in order to allow them adequate time to plan a visit as per their convenience.

The above facility would be subject to the regulations of the notification “Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. As per these Regulations bringing back such currency into the country is restricted to Rs.25,000/- per person. Separate FEMA provisions are applicable to persons in Nepal and Bhutan which would continue to apply.

At the time of return to India the number and denominations of the SBN will need to be declared to the Customs authorities at the airports and other entry points. Necessary form for such declaration will be given out by the CBEC. The details of the declaration and statements that are required to be submitted along with the SBNs at the time of deposit in RBI Issue Offices will be separately announced by RBI. Any false declaration will invite a fine of Rs. 50,000 or five times the amount of the face value of the SBN tendered, whichever is higher.

After the period of exchange is over, the liabilities of the Reserve Bank and the guarantee of the Central Government towards the Specified Bank Notes will stand extinguished. Further, to prevent any continued parallel transactions with the SBNs by unscrupulous elements, after this period, holding, transferring and receiving SBNs will attract a fine of Rs.10,000 or five times the amount of the face value of the SBN involved in the contravention, whichever is higher.

POSSESSION OF SCRAPPED CURRENCY NOTES BEYOND 30-12-2016 WILL ATTRACT CRIMINAL PROCEEDINGS AND FURNISHING WRONG INFORMATION WHILE DEPOSITING OLD CURRENCY WILL ATTRACT FINE FROM 1-1-2017 TO 31-3-2017


 

  1. The government on Wednesday approved promulgation of an Ordinance to make possession of more than 10 scrapped banknotes a penal offence.
  1. The Specified Bank Notes Cessation of Liabilities Ordinance makes holding of old 1,000 and 500 rupee notes after March 31 beyond a threshold amount a criminal offence.
  1. Furnishing wrong information while depositing the old currency between January 1 and March 31 will attract a fine of Rs 5000 or five times the amount.
  1. The Ordinance also provides for amending the Reserve Bank of India (RBI) Act to provide legislative support for extinguishing the demonetised banknotes that are not returned.

HAVE YOU PAID THE ARREARS OF PROPERTY TAX, CLEARED BESCOM BILLS AND PAID ALL OVER DUES – YOU ARE UNDER IT SCANNER !!!!


IT’S RAINING MONEY FOR INCOME-TAX DEPARTMENT – A PRESS REPORT

HAVE YOU PAID THE ARREARS OF PROPERTY TAX,  CLEARED BESCOM BILLS, INSURANCE PREMIUMS IN BULK AND PAID ALL OVER DUES – YOU ARE UNDER IT SCANNER !!!!

 
Post the 8/11 demonetisation move, it is raining moolah for the Income Tax department. Not only has the year been good in terms of increase in searches, seizures, declarations and prosecutions, the intelligence and criminal investigation wing has dug up huge cash transactions done in just two banks in the last two months, amounting to over Rs 1,600 crore. And as many as 1,300 depositors of Rs 1 crore and above cash have been issued notices by the taxmen, calling for explanation.

Cooperative banks all over the state that are under the radar of the department for concealing information of the high value transactions including fixed deposits of more than Rs 10 lakh, will face serious action in the days to come. This year has seen 14 inspections of banks where 59,373 undisclosed entreis have been found, that have transactions of over Rs 10 lakh, totalling Rs 7,636 crore.

After the demonitisation move, in just two banks, the intelligence and criminal investigation wing which has dug up a lot of dirt has found nearly 2,000 entries of transactions to a tune of Rs 1,600 crore. This apart, letters seeking explanation about the source of the finance have been sent to 1,300 depositors for fixed deposits upwards of Rs 1 crore amounting to Rs 2,400 crore.

Intelligence and criminal investigation wing director R Ravichandran told reporters on Wednesday: “We have a lot of information about the non-PAN transactions and the exercise has started. Among the 285 banks, 80 have not filed their annual returns with the department for over five years. Cooperative banks across the state as well as some nationalised banks have defaulted on disclosing high value transactions and deposits of over Rs 10 lakh. These banks are aiding and abetting tax evasion by concealing the transactions and are liable for stringent action as per the income tax rules. This financial year till December, we have issued 2,300 letters to despositors who have made fixed deposits of Rs 50 lakh and above asking them to explain the source of income.’’

The I-T headquarters will also be playing a crucial role in the recently introduced Pradhan Mantri Garib Yojana scheme as crucial information has been gathered and collated from here. Chief commissioner of income tax (Karnataka and Goa circle) Nutan Wodeyar who addressed the media, gave some insights into the scheme which entails declaring taxes and paying in old Rs 500 and Rs 1,000 currencies. “Under the new scheme, people have yet another chance to declare the undisclosed income by paying 50% towards tax, surcharge and penalty berfore March end. If done prior to December 2016, payments can be made in old demonetised currency. If the tax payers do not opt for the scheme and later if there is a search and seizure, then they will have to pay a minimum of 107.25% to 137% of their undisclosed income,’’ Wodeyar explained.

According to B R Balakrishnan, director of the investigation wing, the department has a lot of information from Delhi intelligence unit and tax evaders are also being watched by CBI and Enforcement Directorate as well. “Whoever has done all the smart schemes to evade tax, you are being watched. We are sending out teams every day. Right from Bescom payments where people have cleared huge arrears, to paying property tax and LIC premiums in bulk, all transactions are under the scanner,’’ he explained.

 

AKRAMA-SAKRAMA – WILL IT HAPPEN?


The regularisation of unauthorised layouts, sites and illegal buildings in municipal limits may hit a blockade, if the citizen forums bring in an order from the Apex Court.  It is learnt that the honest tax paying and law abiding citizens are waiting for the notification from the government regarding the implementation of Akrama – Sakrama Scheme to approach the Supreme Court with their legitimate grievance.

Wait for the Apex Court`s decision.

Akrama – Sakrama `s implementation depends upon the proper notification and implementation, any deviation or diversion will hit a roadblock.