Demonetization Question. Why 2000 instead of 1000?

Saturday, November 12, 201622comments

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of accounts submitted to Income Tax Department, he will show that he has deposited the same 10 New Notes which was withdrawn on Day 1 : Evening ( which is actually still lying in the Locker of House )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 !!!!
Share this article :

+ comments + 22 comments

November 12, 2016 at 11:08 AM

or he can just use 500 note .. end of story

November 12, 2016 at 11:29 PM

Hi Atom and Mehul, at least the old currency are replaced which in long term benefits. And there should be a cycles of checks every time while reconciling what bank receives with the currency note codes to impose proper tax.

November 13, 2016 at 1:31 PM

Werz is new 500 note? As far as i knw govt havnt issued it yet

November 14, 2016 at 12:27 AM

It was supposed to come today..aint it?

November 29, 2016 at 8:22 PM

Superb. I really enjoyed very much with this article here. Really it is an amazing article I had ever read. I hope it will help a lot for all. Thank you so much for this amazing posts and please keep update like this excellent article.thank you for sharing such a great blog with us. expecting for your.
Digital Marketing Company in India

December 17, 2016 at 1:08 AM

I just want to say I’m new to blogs and seriously loved this web site. You really have great stories. Regards for revealing your web site.

Back to original

December 19, 2016 at 9:12 PM

Thank you for sharing such a nice and interesting blog with us. Hope it might be much useful for us. keep on updating...!!
seo company in india
digital marketing company in india

Anonymous
January 2, 2017 at 2:36 PM

Sadly,bhakts can buy any argument and then create/support a false narrative. Why not 750 note,would have been a master stroke as well if this is the reason? When most countries in world are eliminating high valued notes,we are creating it fresh,indeed a master stroke...LOL.

January 27, 2017 at 4:35 AM

Wonderful blog.. Thanks for sharing informative blog.. its very useful to me..
iOS Training in Chennai

February 3, 2017 at 5:13 AM

Thanks for this blog. provided great information. All the details are explained clearly with the great explanation. Thanks for this wonderful blog. Step by step processes execution are given clearly.Know the details about different thing.
Digital Marketing Company in Chennai

February 22, 2017 at 2:47 AM

Thank you for sharing such a nice and interesting blog with us. I have seen that all will say the same thing repeatedly. But in your blog, I had a chance to get some useful and unique information. I would like to suggest your blog in my dude circle.
Isoft Innovations Company Address
Isoft Innovations Adyar
Isoft Innovations Reviews
Isoft Innovation Chennai
Isoft Innovation

February 26, 2017 at 8:51 PM

Very nice post here thanks for it .I always like and such a super contents of these post.Excellent and very cool idea and great content of different kinds of the valuable information's.

AWS Training in Chennai

April 4, 2017 at 12:51 AM

This blog is having the general information. Got a creative work and this is very different one.We have to develop our creativity mind.This blog helps for this. Thank you for this blog. This is very interesting and useful.
Manpower Services in Chennai

April 5, 2017 at 12:02 AM

I am not sure the place you are getting your information, however good topic.I needs to spend some time studying more or understanding more.Thank you for wonderful information I was in search of this info for my mission.

Manpower Consultancy in Bangalore
HR Consultancy in Bangalore
Recruitment Consultancy in Bangalore
HR Franchise in Bangalore

April 5, 2017 at 8:09 PM

Great Article… I love to read your articles because your writing style is too good, its is very very helpful for all of us and I never get bored while reading your article because, they are becomes a more and more interesting from the starting lines until the end.

Digital Marketing Company in Chennai

June 14, 2017 at 4:32 AM

This article is very much helpful and i hope this will be an useful information for the needed one. Keep on updating these kinds of informative things...

Android App Development Company

June 26, 2017 at 4:24 AM

Very informative, Thanks for sharing this blog, really shows useful information. keep on posting.. Thanks for your valuable time.
Android Training in chennai

July 3, 2017 at 8:09 AM

Really it was an awesome article. Very useful & Informative
Freshers Jobs in Chennai

July 3, 2017 at 10:19 PM

Being new to the blogging world I feel like there is still so much to learn. Your tips helped to clarify a few things for me as well
iOS App Development Company
iOS App Development Company

July 11, 2017 at 12:16 AM

you are posting a good information for people and keep maintain and give more update too.
seo company in india

July 12, 2017 at 3:43 AM

This article is very much helpful and i hope this will be an useful information for the needed one. Keep on updating these kinds of informative things...
Fitness SMS
Fitness Text
Salon SMS
Salon Text
Investor Relation SMS
Investor Relation Text

Post a Comment

 
Support : Creating Website | Johny Template | Mas Template
Copyright © 2011. Atom's Arena - All Rights Reserved
Template Created by Creating Website Published by Mas Template
Proudly powered by Blogger