PMO has shocked the world by discontinuing the Rs 500 & Rs 1000 notes and introducing the new Rs 500 & Rs 2000 notes. Now here’s my point of view. First, this is primarily going to hit the offline businesses and people who do business with 90% of them have been escaping from taxes because of this while online businesses, freelancers have always been under the tax radar. <\/p>\n
How does this solve the Black Money Problem? With the introduction of these new notes, everyone will have to go to a bank and exchange it & to exchange it they will have to have that money in their balance sheets which they probably have been hiding from years since they were always into cash business. Every rupee will be accountable and since their piles of cash stacked would become unusable from December 31st they will have to either show it in their files and pay taxes or else just destroy it. Of course, it’s not a 100% solution but a great solution for the big problem, now only if PMO would reduce the tax rates for everyone that would push more people to disclose their revenues. Also, make a note that this change will boost the online businesses revenues since people would prefer buying online and ensure everything is accounted easily. There might be a panic in the coming weeks but that should settle down since its a 2 months time frame that might be extended too and this would at least ensure that the majority of the local stores, shops, and business who have been evading taxes will all start paying taxes. <\/p>\n
\nRumours that RBI is launching Rs. 2000 notes soon. New Rs. 2000 notes may not have Mahatma Gandhiji on it. Via Whatsapp. Any sources? pic.twitter.com\/Jy6kFcSKrs<\/a><\/p>\n
— Amit Bhawani ?? (@amitbhawani) November 6, 2016<\/a><\/p><\/blockquote>\n