[somethingsright]

It will work for the current undeclared income. Soon people will begin hoarding the new currency notes. Or become wise and not stash money in currency.

Under the recent tax amnesty scheme if somebody had declared rental income, or business income, they will have to continue declaring it for years to come.

I personally believe that the bigger players in undeclared income are not keeping it in cash, they have assets bought in the names of trusted people, be it cars or properties.

And that is the difference here. Corruption is big players. Undeclared income was for avoiding taxes by mostly regular people.

Corruption had already found a work-around. And even if not, it was free money when they got it; they might not miss it. Regular people were trying to save 30 paise to a rupee that they earned, they will now have to pay it.

The current method is a way to fight black money. For corruption there are other ways, and maybe some will be taken.

[wav-part]

> The current method is a way to fight black money. For corruption there are other ways, and maybe some will be taken.

"Black money" term is so misplaced, it should be untaxed ruppes. It wont affect untaxed assets (overeseas and here).

And guess who has most untaxed ruppes and who cant afford to lose any more ? Low/Middle Class. Good job Modi. You just alienated they very people who voted you in the office.

[shashi20008]

I too do not think this move alone would solve "Black Money" problem in long term, but it certainly will go a long way in setting a better trend.

> You just alienated they very people who voted you in the office.

All govts till now have been doing politically right thing, rather than morally right. If a Govt., for once, tries to go beyond the vote-politics and do what's right, shouldn't that be a welcome change?

[wav-part]

> I too do not think this move alone would solve "Black Money" problem in long term, but it certainly will go a long way in setting a better trend.

Only if the problem is inadequate tax revenue, which is not the problem IMHO. Its tax spending.

> All govts till now have been doing politically right thing, rather than morally right. If a Govt., for once, tries to go beyond the vote-politics and do what's right, shouldn't that be a welcome change?

Not before coming up with better tax spending plan. I have never gotten my taxes worth nor I expect It now, irregardless of how much they take my money.

[legolas2412]

Don't justify your skirting the laws. Why don't you spend the tax you don't pay to the government to a charity?

[wav-part]

I dont want to pay for what I am not getting. Is that so hard to comprehend ?

> Don't justify your skirting the laws.

Breaking laws ? That would be playing right in their hands. I would not give them the satisfication to confiscate my properties and lock me up.

Most of the tax goverments think they should but dont get are legally avoided. They have to be. Otherwise exodus would be catastrophic.

> Why don't you spend the tax you don't pay to the government to a charity?

First my money my rules. Second if the charties help me ofcourse I would for example EFF.

So please justify more of your extortion.

[rm2889]

Brilliant. We need to introduce more Indians to the ideas of individual liberty and conservatism as it exists in the United States. By that I mean personal responsibility, limited government, free markets, individual liberty. The governments in India at every level (starts from municipality all the way to the Center) have been so deep rooted in their corruption that its imperative people understand there are alternates to Big Government.

[legolas2412]

You really think that the Low/Middle class is the target here? Are the people hoarding crores in cash low/middle class?

Low/Middle class is indeed saving 30p per rupee. But they aren't storing them in 1000 rs notes, they are spending that to better their lives. This is really against Medium to big businesses, and rich people like jewellers, goldsmiths and builders.

[wav-part]

> You really think that the Low/Middle class is the target here? Are the people hoarding crores in cash low/middle class?

Earning Rs 21,000/mo even in 2nd-tier cities are not uncommon. Your local small nookad shop (mom & pop shop) can easily clear that in one month. And most of them are not in system. So guess who just had their saving (hoarding? lol) evaporated ?

Those who have too much money, has money to hire tax experts. So IDK this really looks like anus-f__king at scale.

[intended]

I think the intended target doesn't matter, because the collateral damage is much larger.

I am genuinely unsure as to how this will play out - I see the good intentions and the executional hazards.

Facts about the economy - it's largely unorganized. Meaning builders and jeweler are not as large as the people doing labor and other mom/pop transactions.

Being unorganized they don't have bank accounts (also ,exams that wealth is stored in assets like gold).

M1 money, is 27 trillion. If 60% of that is in 500/1000s that's 16 trillion. Which has become useless over night, and will disproportionately affect those unorganized people who aren't on the Internet or HN.

The other effect is that yes, people are going to be unable to do black real estate transactions. But this has happened before and it didn't end those particular transactions.

I'm guessing this will be a windfall gain for PSU banks and the exchequer.