Myth 1- In next round PM Modi will demonetise Rs. 100 and Rs. notes.
Reality- There is no such intention and demonetisation will not be done for any other denomination of legal tender notes.
Myth 2 – Select corporate houses and political party members were informed about the move in advance
Reality– There was no leakage of information at all and complete secrecy was maintained.
Myth 3- The next step is going to be seating bank lockers & freezing gold /diamond jewellery.
Reality- This is entirely baseless. There is no plan whatsoever of sealing bank lockers or freezing jewellery.
Myth 4- New currency notes have chips embedded inside them that will help in tracing black money holders.
Reality- No such chips are embedded in the new notes and this is just some creative rumor mongering.
Myth 5 – The demonetization move will not benefit, black money holders will find other ways to store cash.
Reality- Enforcement agencies are keeping a strict watch on all possible hoarders and instances of hoarding. Also, amendments have been made in Benami Transactions Act and information sharing agreements made with foreign Governments.
Myth 6 -The quality of new Rs 2,000 notes is not good and the colours are coming off
Reality- The new currency notes have a security feature called intaglio printing. A genuine currency note can be tested by rubbing it with a cloth; this creates a turbo – electric effect, transferring the ink colour onto the cloth.
Myth 7- The cost of implementation in this move is more than the benefits
Reality- Legitimate money is completely safe. Money earned through legitimate means but taxes not paid on them (black money) can be declared with taxes and penalty paid on them. Illegitimate money or crime money hoarded in cash will be completely wiped out. Counterfeit money will be completely wiped out.
Myth 8- For withdrawal of own money, a person will be marked with indelible ink
Reality- Indelible ink marking will only be for cash exchange at bank counters and not for withdrawals.
Myth 9- India is not prepared for digital economy as only a limited number of Indians have bank accounts
Reality- Since the launch of Jan Dhan, in 2014, more than 25.5 crore bank accounts have been opened. Considering average family size of 4.5, almost every Indian family is covered by a bank account.
Myth 10- Future generation of black money will not stop.
Reality- With implementation of GST from 1st April 2017, strict benami properties laws, extinguishing of Mauritius round-tripping loophole , new Rear Estate sector laws, and fear of action setting in, future black money generation will be seriously curtailed.
Myth 11- Color photocopies of Rs 2000 notes are circulating, as no one has seen them before
Reality– Advertisements have been released in the media, to generate awareness of the Rs 2000 bank note design. Designs available also on websites of RBI and Ministry of Finance
Myth 12- Govt is going to introduce demat format for all land records, which will make all paper records useless
Reality– Digitization of land records, to prove title, is an ongoing process; Government continues to support this process
Myth 13- ID card photocopies are being misused by bank employees to change money for rich people
Reality– All banks have requisite monitoring mechanisms in place; malpractices, if any will be suitably dealt with.
Myth 14- Cooperative banks are being used to convert black money into white
Reality– State Cooperative Banks and Urban Cooperative Banks, which are regulated and supervised by RBI, have been empowered to exchange the old notes. These banks have the necessary safeguards to check any such malpractices
Myth 15- If indelible ink is applied, one cannot withdraw money for a long time in future
Reality-Use of indelible ink has been introduced to screen out persons coming repeatedly to exchange notes, so that banks can serve a larger number of customers.
Myth 16- Govt. has silently withdrawn order allowing people to withdraw higher amounts for marriages & farmers
Reality– No change in relaxations for farmers and weddings. ONLY Technical correction re-issued under notification No. 3407 instead of 3408
Myth 17- 10 rupee coins with rupee symbol are fake
Reality– Both designs – with and without rupee symbol ‑are genuine
(Republished with 7 More Myths)
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018