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Demonetization and the Precautions you should take


The historic decision to demonetize the high value currency note is proving to be a nightmare for most of the citizens of our country. The problems which we all are facing are temporary and would certainly lead to bright future. Let’s join hands and fight against the biggest evil of our nation “Black Money”.

Before we start the discussion it is necessary to define what black money is. Black money is the money earned by you illegally or you have not discharged the tax liability on the same. Any money which has not been accounted and hidden from the revenue authorities is black money. Even if you have crores of rupees lying with you in cash on which you have paid the taxes, you need not worry when you deposit the same in your bank accounts.

Since November 8, 2016 when the government has taken this hard decision against the black money, it is found that most of us are indulging in depositing somebody else’s cash in our bank accounts. We should immediately stop such practices as it is unethical and also the revenue authorities are monitoring our bank accounts. No transaction would go unmonitored with the strict system being implemented. Even the bank accounts opened in Jan Dhan Yojana scheme are also being monitored. If any unaccounted money is found in these accounts, both the account holder as well as on whose behalf that amount has been deposited will be in great trouble.

If you are business concern and you have cash with you. You don’t have to worry. What you need to do is to check the cash in hand available in your books of accounts and if sufficient cash is available in your books, you may deposit the same in your bank accounts. If the excess cash has been generated due to sale of stock and the proper records have been maintained to substantiate the same, you may go ahead with depositing the cash in bank accounts. But if you have unaccounted cash, it is advisable to pay taxes and penalties on the same. It is strictly prohibited to indulge into hawala transaction either to get small value currency or converting black money to white money.

Government has introduced the marking system in order to ensure that you don’t currencies exchanged multiple times. The motive of this whole plan is to make India cash-less economy. According to a statistics, only 10% of the Indian population deals with huge amount of cash which plays a major role in corruption and generation of black money. If you really want to make your country Swachh, it is advisable not to get currencies exchanged for others because you never know the money you just exchanged was the black money. Let’s stop this practice and if somebody approaches you, ask him to deposit the same in his own bank account. Especially in case of daily wager it is found that for mere Rs 500 they are standing up in queue for converting the black money of those who had been eating our nation like a silent insect.

Since we are a socialist country where relationship building is all the more important, people are finding their friends/relatives/cousins etc. working in banks and forcing them to get their currency exchanged. The id-proofs in most of these cases are bogus. Both of parties i.e. cousin and banker know what is actually happening but due to the pressure of so called relations nobody is able to rebut it. If 95 year old mother of our H’ble Prime Minister can stand up in a queue to get the currency exchanged, then why not our relatives/friends/cousins. Bankers should come out openly and say that this against the spirit of the nation and that they are bound by rules. Therefore no such currency can be exchanged without the physical presence of the id-card holder.

Despite of the above discussions and precautions suggested, if you face any problems in getting your currency exchanged or you need any advise do call us at our helpline number +91-172-461-3328 from 10 AM to 1 PM or mail us 24 hours at indiapaystax@gmail.com. Let’s fight this evil and say big NO to black money.


by:
Keshav R Garg
(B.Com, FCA, CS, ISA(ICAI))
Faculty for GST: Indirect Tax Committee of ICAI
Author: Bharat's GST Ready Reckoner
            A Handbook on GST
Adviser for GST: Industries Association of Chandigarh 
Member: Indirect Tax Committee of CII, PHDCCI, MyGst.MyTax Foundation
Address: 3328, Sector 27 D, Chandigarh, India - 160 019
Phones: +91-172-461-3328, +91-98880-90008
Mails: mygst.mytax@gmail.com, keshavgarg@kdai.in   

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