Demonetization is a currency side step. What happens, if Government withdraws this at this stage? To Know more, click on. Devinder Sharma Demonization is one move in the fight against corruption. This was also done to ease some of the problems that have resulted due to acute shortage of cash in the economy. . These arguments are only designed to stall the revelation of names of some favoured entities. So when we look from these two points at the demonetization, though there are several other factors that impact, in my opinion, it is the common man who is paying the price and who will pay the price.
India is a cash economy; almost everyone keeps a few Rs500 notes as a nest egg. Deaths were also attributed to lack of medical help due to refusal of demonetised banknotes by hospitals. Industrialist criticised the demonetisation, saying that not just the execution, but the concept of demonetisation was wrong in itself. Governance needs to be improved in all its dimensions. We should be ready to stand for the country hours to make better place to live. How does black money hurt, if that is the case, poor people Can some cleaver people answer these questions?? These scams were done by politician and other high profile person but common people of India have to pay that scam in society. Many big businessmen in world are pulling their hand back from India.
Small notes will rapidly lose further value so that essential goods cannot be purchased with a reasonable quantity. Various public sector projects and public sector undertakings are monitored by the bureaucrats. They also include Cookies that enable us to remember your previous actions within the same browsing session and secure our sites. The day after the demonetisation announcement, crashed nearly 1,689 points and plunged by over 541 points. Together, they throw a greater burden on the honest tax payer and lead to economic inequality and concentration of wealth in the hands of the unscrupulous few in the country. I want to sell the land, and I have no interest in short-circuiting the law. No need for taxation forever.
Here, it is believed that an estimated Rs 1. With black money any one can be bought or bribed, essential commodities can be corned and hoarded, healthy competition can be driven out and honest men and public servants can be blackmailed. According to a report by Philips Capital, the extent of parallel economy, which was 23. There have been reports of people circumventing the restrictions imposed on exchange transactions by conducting multiple transactions at different bank branches and also sending hired people, employees and followers in groups to exchange large amounts of demonetised banknotes at banks. Lastly, existence of black income or the parallel economy has corrupted the base of the political system of the country. Widening the gap The most significant impact is that the unfortunate disparity between the haves and the have-nots has been widened day-by-day resulting in economic instability. While most people are short-term pessimists but pin their faith on the long term, there are those who are skeptical of that aspect, too.
However, marauds and searches have been undertaken by the Indian Income Tax department officials at various times, only unearthing the least part. Access to the internet is equally patchy, with only 3% of households in underdeveloped rural areas reporting access to internet in a. Ministry of Finance, Government of India. The way consumer perceive demonetization, it affects a lot in the society, of Indian culture. Keywords: Demonetization, macro theoretic model, informal credit.
The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy. The simplest category has been no-tax tax haven whereas the jurisdiction has imposed no income tax, capital gain tax, or wealth tax of any kind and includes facilities under which outsiders can incorporate corporations, trusts, and foundations legally. For instance, we will recognize your user name and remember how you customized the sites and services, for example by adjusting text size, fonts, languages and other parts of web pages that are alterable, and provide you with the same customizations during future visits. To the credit of the government, this is being done on a continuous basis. Due to overall tightening of the cash-liquidity in the supply chain, consumer firms may be forced to offer easier credit terms to the distributors in the near term.
This is mainly on account of very high levels of property transaction taxes, commonly in the form of stamp duty. Elementary maths shows the gap clearly. It constituted to nearly 49% of the previous currency supply in terms of value. There is also interaction between the reported and unreported activities such that it is difficult to identify black money from the white money economy. This channel works mainly on cash transactions and will likely witness liquidity constraints in the near term.
Is the system making honest people become dishonest or is there some remedy? This allows our sites to recognize your device from those of other users on our sites. And you just cant print only high value notes because lower denomination notes 100s and 50s and 20s and 10s are not only needed for everyday transactions but also need to be replaced faster for obvious reasons. It is not necessary that demonetization will produce big savings in the banking system in the medium term. By way of concentration of income and wealth in few hands, the black money widens the gap between the rich and the poor. A law was passed in 2015 for disclosure of foreign black money.
So surely there has been some reduction in counterfeit currency in circulation. Its a disastrous decision by a dim wit man that is going to set back the poor which is essentially the lower caste Indians. There was a decrease in the terror activities in. Launched in August 2014, it has managed to add 250 million bank accounts through November 2016. First and Third-party Cookies First party cookies These are those cookies that belong to us and which we place on your device or are those set by a website that is being visited by the user at the time e. This is also taking the buyers away from these vendors to big retail markets thus impacting the livelihood of the unorganised sector.