Currency Crises - Ask The Experts - Hosted by Om Prakash Khedar - Pepo - Nov 12 2016, 07.01.14 AM UTC

Currency Crises

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Stopping of 1000/- and 500/- rupee currency notes by Modi Government is a step, welcomed by the majority. But, like any other new thing, people are facing many problems. Mainly, the currency crisis in market. Share your views and opinions here.

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Om Prakash Khedar 1 year ago
I am sure that you are all aware about income tax amendment bill submitted yesterday in Parliament. My economics is ZERO. So it is hard for me to grasp the benefits government is going to have out of this bill. I will ask you my doubts, kindly tell me what you can.

The bill is about so far undeclared money by some individual, firm or company (a) whether being declared now onwards or (b) seized by some government agency. The taxable amount differs in both the cases though.

*One thing is clear here that this income is undeclared and not calculated for. Hence, let's say that it is as currency notes. *

1) 49.9% tax on willful Declaration of undeclared income. Out of remaining amount, 25% will be in fixed deposit for 4 years with 0% interest and left over 25% will be white money for that individual.

Say, for example, I have 1 crore rupees as 1000 and 500 rupee notes. Before this new bill, my money is like a waste paper. After the bill, I can get 50 lacs as white money. So, government is converting my black money with 50% commission. Bravo! Legal than any other agent doing the same thing. And what government is going to do with those 50 lacs getting from me as 500 and 1000 rupee notes? Hard to understand as I have no other property which the government can take from me for that 50 lacs! A golden opportunity to convert black money as white with commission? Can you tell me what benefit the government will have as 500 and 1000 rupee notes which I will give them are no more legal.

*Please note that PM has said that instead of burning the currency or throwing it in river, return it to government so that this can be used for some poor. *
Om Prakash Khedar 1 year ago
5) Is the currency shortage in market likely to end before coming assembly elections?
Om Prakash Khedar 1 year ago
4) Will 'applying ink in banks' also help in ending the currency crises by giving a velocity to the currency notes?
Om Prakash Khedar 1 year ago
3) can this 'currency episode' backfire in coming assembly elections because of 'seems to be unending' crises?
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Om Prakash Khedar 1 year ago
Who will do that? No party
Sunil Khedar 1 year ago
It need to be a peoples movement.
Om Prakash Khedar 1 year ago
2) Is this crisis likely to cause a state of chaos among people?
Om Prakash Khedar 1 year ago
1) Will the end of currency crisis in market end soon?
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Sunil Khedar 1 year ago
The crisis will be very evident for a week more or so. And then in indirect form for couple of months.
Om Prakash Khedar 1 year ago
Post a πŸ‘ for 'yes' and πŸ‘Ž for 'no'. Write your views in detail.