Three Months of Chadhei

Demonetization Question. Why 2000 instead of 1000?

We all are clear and just appreciate and support the master stroke by our beloved PM on the demonetization project. However one puzzle that common people like us and dumb cry babies like (you know who) find difficult to understand is "How come having new 2K notes instead of 1K notes help in catching black money?" 

CA Mehul Shah has a probable answer. Though there may be better answers from the master visionary called NaMo.

Let's Simply take 2 Scenarios to understand the funda !

Scenario A : If as per your suggestion ,  Rs. 2000 Note are not issued but only New Rs. 1000 Notes are issued.

Lets say , for example Mr. X has Rs. 1,00,000/- black money in 100 Old Notes of Rs. 1000 each.

Mr. X divides those Rs. 1,00,000/- into 10 Equal Bundles, each comprising of 10 Old Notes of Rs. 1000 each and puts each Stack on a Table.

On Day 1 , in the morning Mr. X would deposit the first Bundle i.e. 10 Old Notes of Rs. 1000 valued at Rs. 10,000 into the bank and on same Day 1 in the Evening he would withdraw 10 New Notes of Rs. 1000 again valued at Rs. 10,000 and put it in the Locker in his house.

On Day 2 : Morning , Mr. X would deposit the second bundle of 10 Old Notes of Rs. 1000 valued at Rs. 10,000 kept on the Table. However in his books of accounts submitted to Income Tax Department, he will show that he has deposited the same 10 New Notes which was withdrawn on Day 1 : Evening ( which is actually still lying in the Locker of House )

This Modus operandi is called Peak theory i.e. theory of rotation of same money which is accepted by most of the High Courts and Tribunals.  Revenue is also helpless to catch Mr. X because the above scenario can also occur in genuine cases where you withdraw money from bank to purchase something and then when you think that no good deal is available, you may again deposit the same money into your bank account and are not required to pay tax again.

Now the real Game starts.

On Day 2 : Evening , Mr. X would again withdraw 10 New Notes of Rs. 1000 valued at Rs. 10,000/- and keep the same in Locker . So at the end of Day 2, Mr. X has Rs. 80,000 on Table in Old Notes and Rs. 20,000/- in New Notes in Locker.

Now Day 3 will come in next week as limit of Rs. 20000 per week.

The same exercise shall continue till Day 10 and by the end of Day 10, Mr. X shall have no Old Notes and Rs. 1,00,000 in 100 New 1000 Rupee Note in the Locker.

However, to the Income Tax Department, Mr. X has shown that he was having only Rs. 10,000/- as black money initially ( i.e. one bundle of 10 Notes of Rs. 1000 ) and he has rotated the same Rs. 10,000/- by depositing it into Bank account in the morning and withdrawing it in the evening and again redepositing the same on next day and so on.Thus, Mr. X has paid tax only on initial Rs. 10,000 whereas he has managed to convert all his Black money of Rs. 1,00,000 into new Notes.

Scenario B :  Watch what happens when PM issues New 2000 Rupee Note instead of 1000….! 
Mr. X deposits first bundle of 10 Old Notes lying on Table in the Bank on Day 1 : Morning and then he withdraws 5 New Notes of Rs. 2000 on Day 1: Evening and keeps it in locker.
Now on Day 2 : Morning when he goes to deposit second bundle of 10 Old Notes of Rs. 1000 each and wrongly shows the Income Tax Department that he has redeposited the same money which was withdrawn on Day 1:Evening – Bingo !!!
Now Isn’t it really a Master Stroke by Mr. Narendra Modi, the beloved Prime Minister of our country ?
He is caught red handed !! because the Bank slip on Day 2 submitted to bank shows deposition of 10 Notes of Rs. 1000 each whereas the Govt knows that Mr. X could never have withdrawn on Day 1 any note of Rs. 1000 because they were never Printed !!!!

The Sylvester Stallone

This is one of the SADDEST stories ever told in Hollywood. His name is Sylvestar Stallone. One of the BIGGEST and Most famous American Movie superstars. Back in the day, Stallone was a
struggling actor in every definition. At some point, he got so broke that he stole his wife's jewellery and sold it. Things got so bad that he even ended up homeless. Yes, he slept at the New York bus station for 3 days. Unable to pay rent or afford food. His lowest point came when he tried to sell his dog at the liquor store to any
stranger. He didn't have money to feed the dog anymore. He sold it at $25 only. He says he walked away crying.

Two weeks later,he saw a boxing match between Mohammed Ali and Chuck Wepner and that match gave him the inspiration to write the script for the famous movie,ROCKY. He wrote the script for 20 hours! He tried to sell it and got an offer for $125,000 for the script. But he had just ONE REQUEST. He wanted to STAR in
the movie. He wanted to be the MAIN ACTOR. Rocky himself. But the studio said NO. They wanted a REAL STAR.

They said he "Looked funny and talked funny". He left with his script. A few weeks later,the studio offered him $250,000 for the script. He refused. They even offered $350,000. He still refused. They wanted his movie. But NOT him. He said NO. He had to be
IN THAT MOVIE.

After a while,the studio agreed,gave him $35,000 for the script and let him star in it! The rest is history! The movie won Best Picture, Best Directing and Best Film Editing at the prestigious
Oscar Awards. He was even nominated for BEST ACTOR! The Movie ROCKY was even inducted into the American National Film Registry as one of the greatest movies ever!

And do You know the first thing he bought with the $35,000? THE DOG HE SOLD. Yes,Stallone LOVED HIS DOG SO MUCH that he stood at the liquor store for 3 days waiting for the man he sold
his dog to. And on the 3rd day,he saw the man coming with the dog. Stallone explained why he sold the dog and begged for the dog back. The man refused. Stallone offered him $100. The
man refused. He offered him $500. And the guy refused. Yes,he refused even $1000. And,Believe it or Not,Stallone had to pay $15,000 for the same,same dog he sold at $25 only! And he
finally got his dog back!

And today,the same Stallone who slept in the streets and sold his dog JUST BECAUSE he couldn't even feed it anymore,is one of the GREATEST Movie Stars who ever walked the Earth!

Being broke is BAD. Really BAD. Have You ever had a dream? A wonderful dream? But You are too broke to implement it? Too tiny to do it? Too small to accomplish it? Damn! I've been there too many times!

Life is tough. Opportunities will pass you by,just because you are a
NOBODY. People will want your products but NOT YOU. Its a tough
world. If you ain't already famous, or rich or "connected", You will find it rough.

Doors will be shut on You. People will steal your glory and crush your hopes. You will push and push. And yet NOTHING WILL HAPPEN.

And then your hopes will be crushed. You will be broke. Damn broke. You will do odd jobs for survival. You will be unable to feed yourself. And Yes, you may end up sleeping in the streets.
It happens. Yes, it does.

BUT NEVER LET THEM CRUSH THAT DREAM. Whatever happens to
You, Keep Dreaming. Even when they crush your hopes, Keep Dreaming. Even when they turn you away, Keep Dreaming.
Even when they shut you down, Keep Dreaming.

NO ONE KNOWS WHAT YOU ARE CAPABLE OF EXCEPT YOURSELF! People will judge You by HOW you look. And by WHAT You have.
But please, Fight on! Fight for Your place in history. Fight for your glory. NEVER EVER GIVE UP!

Even if it means selling all your clothes and sleeping with the dogs, ITS OKAY! But AS LONG AS YOU ARE STILL ALIVE, Your STORY IS NOT OVER. TRUST ME.

Keep Up the Fight. Keep your dreams and hope alive. Go great .

Like and share if inspired. Lovely day people!