No Tax for rs 2.5 Lakhs Cash Deposit of old 500 and 1000 Notes
It have be now flashed in news that you do not have to worry if you would deposit cash worth rs 2.5 Lakhs in your account. People depositing more money will have to pay fine that may be up to 200%.
Indian Prime Minister Narendra Modi made a surprising announcement on Tuesday when he announced that Rs. 500 and 1000 notes will be discontinued. Specifically, people cannot spend their notes after the end of Tuesday.Also, any notes people still have can be deposited at banks or post offices but they must be deposited by the end of December or they will be invalid.
ATMs around the country will not be functional on 9 and 10 November. This is to help with easing the transfer of notes. Some ATMs will be functional on 10 November. However, a majority of ATMs will not work at this time.
Modi stated in his speech regarding the decision that India has developed one of the strongest economies in the world. Still, there are concerns over corruption within the economy. This especially comes from organizations using fake money for hostile intentions. The need to discontinue these notes has arisen amid concerns over these notes being used for malicious purposes.
The Main Concern
The key problem with the Rs. 500 and 1000 notes is that terrorist organizations have been forging Indian currency. They have been using fake 500 and 1000 notes as a means of funding many of their terror-related actions.
This fake currency is also known as black money. While about 1.25 lakh crores of this money have been recovered, there is a sense of uncertainty over how much of this black money is still available on the market.
This is also being reported by Modi in his speech to be a solution that will control how well people are able to handle money. This especially focuses on controlling poverty as it ensures that those who use corrupt funds will not be able to drive up the prices of different items all around India. This is not going to be easy to complete but it will have to be managed properly for the people of the country to be protected.
While this new development from the government is surprising, it should be noted that other transactions can continue to operate as normal. These include debit card, cheque and online transactions.
Also, there have not been any security breaches reported with regards to financial information at any banks or other places that handle money. Still, people should be careful with regards to how they are handling their money and what they are doing with it.
Some Places Still Take In Notes
A few places around India will still allow people to use their Rs. 500 and 1000 notes but only for an extremely limited amount of time. Government hospitals, cemeteries and crematoriums can continue to accept these notes until the end of 11 November.
The overall goal of this move is to control the threats of terrorism and corruption in India. With many attempting to use fake money in India, the decision to get rid of Rs. 500 and 1000 notes is a difficult choice. Still, this is believed to be crucial for the security of the country to ensure that nothing wrong may develop in any case.