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A comment on India's demonetisation of Rs. 500 and Rs. 1000 notes.

Re:India's demonetisation of Rs. 500 and Rs. 1000 notes by blackoil on Tuesday November 08, 2016 @11:32AM (#12901581)
You have to deposit all these notes in your bank account, from which you can get new notes. Anyone hoarding huge amount of black money in cash can't go to bank with it, and his money will turn worthless. Diluting such money will easily erode 20-40% value. So definitely a bold move.
[ Parent | on HN ]
Re:India's demonetisation of Rs. 500 and Rs. 1000 notes by dx034 on Tuesday November 08, 2016 @12:02PM (#12901879)
They'll probably buy houses above market value. The seller can declare the money and pay taxes on it. The houses can be sold again one by one over the next years and the money legalized. Basically an easy way of laundering it. Still good for the state as the money is taxed.
[ Parent | on HN ]
Re:India's demonetisation of Rs. 500 and Rs. 1000 notes by ohyes on Tuesday November 08, 2016 @12:04PM (#12901910)
He can still go to the bank with it, assuming it is legally obtained, would have to pay income tax, however.
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Re:India's demonetisation of Rs. 500 and Rs. 1000 notes by dump121 on Tuesday November 08, 2016 @12:17PM (#12902027)
if it is accrued over years, they'll have to pay some percentage as penalty over the regular tax rate.
[ Parent | on HN ]