Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« General »
Open DEMAT Account in 24 hrs
 How to calculate income tax on stock market gains along with your salary?
 Moonlighting for Additional Income? Know Its Tax Implications
 Have you claimed education cess? Be prepared to pay tax as per the new rules
 Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBIOS, 2021)
 How is tax computed for selling a house?
 How much tax do you pay on equity investments?
 Fuel taxes: Centre s gains striking since FY16
 Tax rules for NRIs on sale of assets located in India
 ITR filing: Know tax rules that apply to freelancers in India
 Delhi Real Estate News: NDMC extends last date for property tax payment with amnesty scheme
 Citizens must file THESE ITR related forms before due date Income Tax Returns

Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley
November, 17th 2016

Finance minister Arun Jaitley has ruled out rollback+ of demonetisation of Rs 500 and Rs 1,000 notes+ and said the massive operation to replace high denomination currency will soon be over, paving the way for current restrictions on banking to be lifted.

Jaitley also admitted that the exchange window of Rs 4,500 a day had been misused and this had led to the government reducing the amount to Rs 2,000 in a bid to curb use of "currency mules" to change illegal wealth to new notes.

"The queues are becoming smaller. Deposits and withdrawals are progressing well... With this (however), the facility to exchange Rs 4,500 has been misused. The government will not accept this misuse. This amount has been reduced," the FM said.

The minister firmly ruled out any reconsideration of the demonetisation decision. "Let me make it clear, there is no question of a rollback that AAP and Trinamool have called for. This is a clear decision of the government, of the PM, to clean up polity and the economic system. And we will stand firm," he said.

Jaitley also questioned Congress's vested interest in opposing action against black money.

The minister said recalibration of ATMs for delivery of new Rs 500 and Rs 2,000 notes had picked up pace. "Some 22,500 ATMs were recalibrated today (Thursday). This will ease pressure as new notes will begin to circulate freely," he said.

Jaitley said he wanted to assure citizens that there was no shortage of currency. "As far as RBI's printing and currency is concerned, it began its work six months ago. It is sufficient and it will keep coming into the market every day," he said.

The minister said he hoped for support from all political parties but the government would not heed calls to halt the action against black money. "To find some reason or the other to prevent black money and crime money from being replaced is not acceptable," he said.

The government, sources said, was keeping a close watch on the exchange facility being misused by persons seeking to change old currency hoards and this option would be reviewed once ATM functioning normalised.
Top Comment

Reduce the exchange in cash from 24th to 20th . The max cash limit from 2.5 lakhs to 1 lakh , this will further reduce the misuse.

SEE ALL COMMENTSADD COMMENT

The exchange allows those without bank accounts to change currency and government estimates that many needing to do so in an above-board manner have done so. The window will not be shut abruptly but the disincentives for those seeking to launder money as well as for the "mules" will rise with the reduction of the daily amount. The government has eased restrictions by allowing withdrawals for farm use and marriages though there is concern that these exemptions may also be misused.

However, the dependence on cash in these transactions has forced a rethink with the government calculating that the scale of evasions through such channels will remain limited.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting