CA Mehul Shah answers #eChaiQnA : All you wanted to know about Rs. 500-1000 currency ban


Join us today at 4 pm to discuss about the impact of the Rs.500-1000 currency ban and what you can do.

We'll be joined by the Mehul Shah, Founder, TaxOrigin, CAs & Founders from the community to share their insights. You can ask any of your queries which they'll respond and you can also share your insights for some of the questions posted here.

Checkout this thread for official announcements : https://echai.in/stories/indiafightscorruption-rs-500-1000-notes-ceases-to-be-legal-tender

ps: Some of the content here is curated by eChai team from public posts on social media platforms. In case if you have any queries, then email us at [email protected]

4 Participants
Jatin Chaudhary Nitin Pahilwani CA MEHUL SHAH Kavita Singh
Questions & Answers
Ca Mehul Shah

This is the one of the Serious Issues which needs to be addressed at priority as we can stand inconvinience for the betterment of our economy but not at a cost of risking someone's health.

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Ca Mehul Shah

When I am receiving Rs. 2000/- note , I know by confidence that there is of course highest probability that it is "White money" with which I am dealing! Whereas when I was receiving Rs. 1000 note , I can assure that I am going to pay tax on the Rs. 1000 note I have received as income but I am not sure whether it was accounted by the person who gave me that Note!

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Ca Mehul Shah

It is like we know that the New born baby is always "innocent" and "pure" whereas you cannot take guarantee of the integrity of the big baby like Rahul Gandhi.

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Nitin Pahilwani

RS. 2000 NOTE IS COMES WITH A TRACKER AND MORE ADVANCE FEATURES AND GOVT IS NOT PRODUCT 2000 NOTE TILL SOME TIME ONLY... RS. 500 NOTES WILL CONTINUE..

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Jatin Chaudhary

Nitin - Do let me know in case if you know the source about this tracker kind of feature for Rs. 2000 notes. I'll mention about it in the above thread.

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Nitin Pahilwani

Jatin, it was a hoax news, govt has clarified... govt will issue Rs. 2000 notes till some time may be 6 month or more... once the liquidation in market improve it will stop issue fresh new notes

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Ca Mehul Shah

Cash withdrawal from a bank account, over the counter will be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.

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Ca Mehul Shah

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

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Ca Mehul Shah

But also understand that even one of the conditions would have been exempted for convenience of common man, that would have paved way for Business Tycoons to route their money into Banks without paying any taxes using that same LOOPHOLE. So the better course is that we as educated community understand the temporary glitch and help the other uneducated or ignorant sector of society to exchange and spread awareness. This is time to act as responsible citizens.

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Ca Mehul Shah

For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.

For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.

In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

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Ca Mehul Shah

The issue of devaluation should be studied mutually exclusive of the yesterdays Notification because this was the issue even if the Rs. 2000 notes were rolled out independent of complete demonetisation of Rs. 500 and Rs. 1000 notes.
Although it is quite an Interesting Issue. But the topic is more of Macro economics and would expect any other Professional to throw some insight.

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