Deposits above Rs. 2.5 lakh to face tax, penalty on mismatch
200 per cent penalty in case of income mismatch.
- Further dangling the demonetisation of 500 and 1000 rupee notes, government has warned that cash deposits above Rs. 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch.
- Revenue Secretary Hashmukh Adhia said that the (tax) department would do matching of this with income returns filed by the depositors and suitable action may follow.
Income Tax Act will be applied as penalty for tax evasion.
Demonetisation will benefit economy in long run: Jaitley
The main motto will be to bring back black money into economy
- A day after Prime Minister Narendra Modi announced his government’s stunning decision to withdraw Rs 500 and Rs 1,000 currency notes, Finance Minister Arun Jaitley had to step in to address public concerns over the short-term inconvenience.
- Terming it as a significant economic reform, Jaitley said the measure will benefit economic growth, boost tax collections and bank deposits, ease inflation and check black money.
Estimated Black money of India in Switzerland.
Digital wallet players see big spike in usage
E-wallet services are witnessing huge entries
- Digital wallets such as OlaMoney, FreeCharge, Fino Paytech, Paytm, Oxigen and ItzCash have witnessed massive spike in terms of downloads and recharges in just 24 hours.
- A Flipkart spokesperson said that in a bid to provide convenience to consumers, who are short on cash, the company has delivered CoD products on credit and would collect the amount after November 30.
Number of percentage seen in cash on delivery as mode of payment.
RBI issues new series of Rs. 500, Rs. 2,000 currency notes
Colours of the new currency notes have been changed.
- Stone grey coloured Rs. 500 currency notes and magenta coloured Rs. 2,000 currency notes will be put into circulation by the Reserve Bank of India following Prime Minister Narendra Modi’s announcement that Rs. 500 and Rs. 1,000 currency notes now in use will no longer be legal tender from today.
- The predominant new theme of the Rs. 500 note is the heritage site of Red Fort.
- The RBI said it is introducing the new design banknotes of Rs. 2,000 denomination as part of Mahatma Gandhi (new) series. It has an image of ‘Mangalyan’ (ISRO’s Mars mission) on the reverse.
Both the new notes will have the logo as well as slogan of Modi’s pet program on the reverse.
‘Realty prices may crash up to 30%’
Real estate sector will face major impact on new currency change.
- The Centre’s decision to demonetise Rs.500 and Rs.1,000 currency notes will have a major impact on the country’s real estate sector, which accounts for a majority of cash transactions.
- The Centre’s decision may lead to a sharp correction in realty prices but at the same time liquidity concerns for the builders, resulting in delays in construction in the short to medium-term.
Expected price drop in realty sector.
Notes with ‘chips’: Reports debunked
No electronic chip has been integrated in new currency notes
- Reserve Bank of India clarified as the Rs. 2,000 notes entering into circulation on November 10 will not have any electronic chip.
- Rumours of the inclusion of a tracking chip in the note went viral on social media hours after Prime Minister Narendra Modi announced the demonetisation plan.
- Latent images.
- Coloured strip security threads.
Stocks roil on Trump effect
India stocks fell due to monetization of Rs.500 and Rs.1,000 notes
- Stock markets around the world seen sharp declines from fear of trade barriers that could arise if U.S. President-elect Donald Trump keeps his campaign promises.
- Indian indices too fell in sync, catalysed by the demonetization of Rs.500 and Rs.1,000 notes, before recovering by the end of 9th November.
45th American President.