Currency Demonetisation in India
With effect from the midnight of 08th November 2016 the government of India has announced that the currency notes of Rs 500 & Rs 1000 shall no longer be a Legal Tender. The scheme is aimed to curb the black economy, routes of terror funding, to curb tax evasion which are deliberately done through cash transactions in India to curb corruption at political and bureaucratic levels.
We are offering consultancy on the demonetisation program to companies and Individuals.
The key highlights of the scheme as on date are listed below-
- Daily Exchange Limits: INR 4500
- Daily Withdrawal limit: INR 2500 from calibrated ATM’s
- Daily withdrawal limit: INR 10,000 through cheques/INR 24,000 weekly through cheques
- Exchange can be done till 30/12/2016 across banks and post offices
- There is no bar on EFT(Electronic Funds Transfer), online banking, POS payments through Debit/Credit Cards or through e-wallets
- No limit on cash deposits at banks
- Advisory for savings account holders: deposits above INR 2,50,000 till 30th December 2016 may attract scrutiny by the Income Tax(IT) deptt
- Any cash not declared till 30/12/2016 shall be deemed to be null and void. However even if someone wishes to declare they can do it at any RBI (Reserve Bank of India) branch by duly filling a Form and the amount can be exchanged after paying the necessary tax with a penalty of 200%
Exemptions as revised from time to time:
- Funds deposited from Farm/Agricultural/cultivation earnings to any extent shall not be scrutinised or penalised by the IT deptt
- Deposits done by a Farmer in their bank account shall not be taxed by the IT deptt
- Deposits done in current bank account shall not be questioned if it is justified to the IT deptt, subject to a reasonable transactions and it shall come under normal IT taxation regime
- Old currency notes of Rs 500 & Rs 1000 shall be accepted at all the Govt hospitals, govt offices as revised from time to time
- Payments to private hospitals, caterers, tent houses (during the current wedding season) can be done via cheque/Demand Draft (DD). if the recipient denies to accept it one may approach the nearest judicial magistrate or the area District magistrate or a competent authority or the police to lodge their written complaints
For any further facilitation you may please contact-
CP: Mr. Ravi Jha
Tel: +91-9999005379/+91-11-6588 8820
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