Rs.500|Rs.1000 Ban – Beginning of A Cashless Era

Whoa! The “Sandesh” from Prime Minister Narendra Modi shook the entire nation last night and got the Aam Aadmi thinking what they will do with currency notes that made them feel like a rich person sometime back. Well, we applaud the bold move that the government has taken to get out the deep rooted black money.

I know it has seems like a big hassle for most of us who are not a part of the black money game but in reality it’s not even that big of a hassle. Here are the things that you need to know which can get you some sleep tonight.

1. The PM said that the Rs.500 and Rs.1000 notes are not a legal tender i.e. they are invalid from 9^th November, 2016. But if you’ve got cash in hand i.e. Rs.500 or Rs.1000 notes you can go to the bank and deposit it in your bank account.
2. The last date to deposit the old currency notes is 30^th December, 2016 and if you miss this also then you can deposit the cash at authorized RBI centres only along with a declaration. (PS. Don’t miss this deadline)
3. Make sure you carry your ID card such as Voter ID card, Aadhar Card, Passport, PAN etc. while going to the bank to deposit the money.
4. The banks will soon issue new currency notes of Rs.500 and Rs.2000 which will be considered as legal for all the future transactions.

A Trap for Unaccounted Money

So you must be wondering then why there is so much hue and cry. The hue and cry is for those who’ve got loads of unaccounted cash money which has not been disclosed yet.

The only way to exchange the old currency notes is by depositing it in your bank account. For once you may deposit the unaccounted cash but be prepared to receive a notice or a visit from the Income Tax Department as they would be keep a close watch on all the high value transactions that would be happening.

This big surprise move makes it clear that he’s surely not giving up on the tracing and getting the black money out of the system which is very important for the growth of our country. Four months back we wrote an article on Section 206C stating that times are going to get tough for black money and here we witness the elimination of high denomination of old currency notes.

In the end, I want to urge all my readers to pay the legit taxes on the income they earn so that your hard earned doesn’t gets into jeopardy like this!