Moreover, those who have deposited very large amounts of old currency notes into the banks will be under the scrutiny of the Income Tax Dept. Surely we faced a lot of problems because of this sudden announcement, but just imagine if it was told a month ago, then all launderers could have managed their money in this or that form. Second disadvantage is that destruction of old currency units and printing of new currency new units involve costs which has to be borne by the government and if the costs are higher than benefits then there is no use of demonetization. Anyway the riots did not happen and are unlikely to happen by wildest imagination. One can buy a property for Rs 1 lakh and write it down as Rs 1. As for the rest of the tax paying citizens — they have woken up richer and certainly wiser by paying up taxes all these years. Another aspect this brings up is that the initial phases of the process of demonetisation may have been carried out without the knowledge of Rajan due to his staunch opposition to demonetisation.
The importance of a demonetization essay cannot be stressed in the current situation where there is an acute lack of a good demonetisation essay in essay books, guides etc. Some politicians stated that only around 4% of the black money in India was held in the form of cash. The first and foremost objective is to attempt to make India a corruption free country. Now, since most large transactions will be through digital means, the tax authorities will be aware and the correct amount of tax will have to be paid. Sadly, there is going to be no gain after this pain. These officials also became much more careful about accepting bribes and instances of accepting bribes reduced after demonetisation.
By the end of December 2016, political opposition leaders claimed that over 100 people had died due to demonetisation. This brought a lot of black money and their owners under Income tax departments radar. Many experts have stated that the government should have prepared more before announcing demonetisation, the government has countered that too much planning would have resulted in more leakage of information thus defeating the purpose of catching tax evaders unawares. The second demonetisation took place in 1978 under the Janata Party government that had come into power after the defeat of the Congress party in the elections just after the Emergency of 1975-77. The state has been increasingly withered away under the impact of big capital and their insensitive masters. The new denominations of 2000 and 500 do not have any new security features so there is no doubt that fake currency will flow in the market very soon. The Specified Bank Notes Cessation of Liabilities Act, 2017 was notified on 1 March 2017, replacing the ordinance.
Farmers are equally hit because of cash restrictions — sowing of wheat has not taken place. However, it is essential to note here that although it is an excellent move towards curbing corruption, the plan can by no means be a conclusive step. The income tax collections increased in financial year 2017 due to Income Disclosure Scheme 2016. Violence broke out in some parts of the country including New Delhi. As a result, the separatists are now clueless. With little warning, India's Prime Minister Narendra Modi announced to the citizenry on Nov. All that I know is that my own bank does not allow me to withdraw my money, except upto the limit dictated by Government.
It was undertaken to target the tax-evading business corporations which were hiding the huge profits they had made by supplying the Allied powers in World War 2. Chairman of had initially appreciated the decision of demonetisation, but later said that the move had derailed the economy, and expressed skepticism about its outcome. Is that prophecy right or wrong — we can never tell till we complete this long run. Other projections coming in are certainly not flattering for the government. In the present setting, it is the restricting of the 500 and 1000section money notes as a lawful delicate. Chief Minister of Bihar supported the move.
A data study July 2016 - February 2017 of 54 companies across 13 sectors listed with the showed that companies in cement, cotton and rubber sectors showed an increase in total trades while companies in automotive, clothing, foods, paper, real estate, retail, steel, sugar, tea and textiles sectors showed a decrease in total trades after demonetisation. This will raise the income tax collections. That information will be useful to increase the number of people who are brought under the tax net. I am giving you figures which have been sourced from several reports by experts. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Please let me know if any correction required. Government also demonetize in many cases such as in 1946, 1978 here high denominations notes of Rs.
Demonetisation though a very good decision to curb the menace of black money failed at many points-: 1. Impact of Notebandi within India and Foreign Relations Demonetization has a big impact on Indian market and citizens like you and me. Long queues became the norm for people wishing to withdraw money. Troubles of the aam aadmi. Through this procedure, the government or administration could tidy up a gigantic measure of undeclared wage. Argument 8 : Supreme court has said there will be riots The opposition found a great support in Supreme court comment but it was more of a candid suggestion to the govt rather than any incrimination of their policy. In the demonetisation debate on the first day of the winter session of Parliament at the Rajya Sabha, from the compared to , and.
In November 2017 the Supreme Court dismissed 14 petitions related to demonetization, and asked petitioners to file pleas with a constitutional bench which would deal with cases related to demonetisation. In November 2017, the referred all cases related to demonetisation to constitutional bench to review the legality of the demonetisation, implementation irregularities and violation of people's rights by limits on cash withdrawals. The exchange of banknotes was stopped completely on 25 November, although the government had previously stated that the volume of exchange would be increased after that date. It seems that our elected leaders have poor reading skills. The authority must look into this matter seriously and prevent any further deposition of such money. Sify cartoon — Satish Acharya satishacharya 7.
Nobel Laureate Kailash Satyarthi attributed this to the absence of concrete steps by the government to curb the human trafficking business. We will start speech or essay with introduction and status of the topic and then we will have the demonetisation where we will discuss it in more details. This not only collected a big sum of money but acting as a brutal deterrent to the corrupts. The government countered that if prior knowledge had been given, most of the black money would have been quickly transferred to overseas banks and hidden through other means like benami property, gold bullion, and jewelry. It will take some time for new counterfeit money to get printed. Chief Ministers of various states strongly opposed the move and made protests against it.
He also noted that it may result in the public opinion in favour of the government which is led by the if the opposition parties, led by , fail to form the countervailing narrative. Leave a comment in comment box. Chaos ensued in the cash-dependent economy some 78% of all Indian customer transactions are in cash , as long, snaking lines formed outside and , which had to shut down for a day. We have example of our country India when the government scraped Rs. Therefore, this move can also be seen as a correction in the philosophy of neo-liberalism, which demands the least state intervention and assumes that for faster growth and development society has to bear the pain of both corruption and inequality. Argument 4 : The poor are suffering the most This argument seems most innocuous and selfless, especially if presented by well meaning intellectuals.