Demonetization is really a surgical strike against Black-Money, Fake-Currency, Terrorism & Corruption??

EITHER (Mr. A said) PM Modi is successful in long-term to establish "Digital India" and "Make in India" via demonetization on the four pillar:

(1) stop black money,

(2) fake currency,

(3) Terrorism and

(4) corruption

OR (Mr. B said) the Reality is:

Common people are dying..!

Wages lost..!

70% biz sales down..!

Farmers badly effected..!

Poor people are hungry..!

and PM Modi messed up India’s Economy!

Mr. A (CA Rahul Gupta): May be your facts are more accurate then mine.

-- For ex. for the establishment of Delhi metro, Indian Govt took a loan of Rs.60,000 crore from Japan considering govt have no money (and after demonetization more than Rs.74,000 crore money deposited into Jan-Dhan accounts only)

-- People who died in line in front of temple consider like he/she receive swaarg, and people who died in line during deposit/exchange of money was considered as because of govt mismanagement..??

-- Wages lost for those who don't have their proof of working and payer refuse to pay....this is not because of demonetization, its a open "Gunda-Raaj"...

-- 70% biz sales down for those who was running their business on entries and adjustments. Proof is sensex and nifty.

-- Strategically farmers are more intelligent then us. They better know how to take loan against kishan credit card @4% interest rate; how to take subsidy against non-paid electricity bills, non-paid loans etc.

-- If you find beggars at Amritsar railway station where Golden Temple is serving food free of cost then what you and me can do to solve the situation.... I think no solution..

Mr. B: Sir, no offence, but if you as a CA are saying this statement, then I assure you that this country in a deep deep shit. I am being veracious when I say that I have not come across even a single CA who is appreciating this step.... But, WOW... I did not expect this statement from a CA, especially you... You guys understand how the system works and are the first hand interaction point between the government and the industry.... but I am stunned.... A CA making this statement... I have nothing left to say....

Mr. A: Sorry to disappoint you Mr. B.... And may be you have bigger circle of CA Professionals then me who is not appreciating this step. However, in between my known 1000's of CA professional 75-80% are appreciating the step....

11-Dec Report: The latest thing catching the eye of the public because of demonetization are the frequent reports of major raids in some or the other part of the country where-in huge stashes of gold, old demonetized cash, or new currency have been seized by the tax authorities.

For example, as per this report, the first seven months of 2015 saw Income Tax raids seize assets worth about Rs.102.50 crores. The same figure for the same seven months of 2016 (IDS Scheme) was about Rs.330 crores. We are just 4 weeks into demonetization, and the raids have started just 2-3 weeks back. In this short span, the value of assets seized has easily surpassed the 7-months figure of 2015 and is all set to overtake even the 7-months figure of 2016.

"I-T raids uncovered Rs.3,185 crore of undisclosed income since demonetization"Dec 22, 2016 - 10:30 IST - New Delhi: Over RS.3,185 CRORE OF UN-DISCLOSED INCOME has been detected while RS.86 CRORE WORTH NEW NOTES have been seized by the I-T department.

Mr. B: You continue to astound me. You are comparing IT-raids with Demonetization? You are so interested in quoting about facts? Then listen to this:

(1) 65% of Indian population does not have accounts (Number taken by the Aadhar Card Vigilance Committee) and you are creating cashless economy??

(2) You say that honest people are depositing taxes but please inform the biggest source of black money??? It is Political parties. Political establishments have no accountability and they are exempt from RTI but others continue to suffer. If BJP was so vocal about black money eradication (which they are not, especially since PM Modi came into power because of Black money), a simple step would have been to disclose political party funding patterns.

(3) About 65% of labours are daily wage earners who are not able to earn their living... And you are asking them to go cashless?? When I say poor are hungry, I am talking about them and not so called Amritsar beggar (The fact that you did not understand this point gives the actual glimpse between the reality and an assumption).

(4) Everyone is saying, this will be good in the long term, but riddle me this, when no investor will invest in the country due to no credibility of the government, how will that be good for the country?? You as a CA are aware of the difficulties in raising capital and finance in the country. With this it will much more difficult as the businesses will not be able to survive and the economy will be a shut shop. WAIT FOR 2017.... JUST WAIT AND WATCH.

Mr. A: This is a endless discussion.

There was a joke in Dainik Jagran few days back when a writer said - "Because of demonetization, one more important point come out of knowledge that, there are 125 crore economist in our country who are giving their expert opinion on the step of demonetization."

At the end you are right - WAIT FOR 2017.... JUST WAIT AND WATCH

Mr. B: Black-Money can be generated again in a split second....

Mr. A: This is only why MODI Govt. is trying their hard to introduce cashless economy AND it is not about MODI specifically, it is about the whole team who are working behind him....anyone have to step out to change the mindset of the people who are holding or will try to generate black money.

May be you have experience or having classes how to generate black money Mr. B.

Mr. B: How can you introduce cashless economy in a population with 65% having no bank accounts? If they really wanted to curb black money...simple step would have been to disclose the political funding... But...this is hypocrisy... Which you guys are supporting blindly....

Mr. A: For them MODI Govt. introducee Pradhan Mantri Jan-Dhan Yojana. Only a photo and a declaration sufficient by an individual. And records says - 20% of the total population take benefit of the Yojana.

And for political parties following reforms are proposed-

(1) significance in the context of the Election Commission's recommendations to the government to amend laws to bar tax exemption to parties that do not contest elections and win seats in Lok Sabha and Assembly polls AND

(2) to ban anonymous donations above Rs 2,000 to political parties.

(Example of reform is some Rao was suspended who caught in I-T raid in TN.)

Mr. B: Sir, these are all cover stories and recommendations... They have already passed laws by which no political establishment can come under scrutiny.. Instead of asking people to stand in queue, they should have made a provision to amend that particular law..

Mr. A: One side we are praying while giving bribe to someone that God please do something. Why not people in power are doing anything to stop these non-sense and another side we are hoping to let banker come to our home, ask us whether we have money to deposit/exchange is not possible. I love your comment which looks sensible - WAIT FOR 2017.... JUST WAIT AND WATCH.

Mr. B: True dat, lets WAIT AND WATCH.

So, its really a endless discussion. Reality will be in front of the people in 2017.

Regards, CA Rahul Gupta

(Practicing Chartered Accountants)

M R T & Associates, Chartered Accountants