Here’s what people are doing to avoid tax lens on currency exchange!
The government’s decision to declare the old Rs 500 and Rs 1,000 notes invalid has left many people with huge unaccounted-for cash, and they are now looking for desperate ways to convert the money into ‘white’. Here are some of the tricks they have resorted to:black money crackdown Updated: Nov 14, 2016 23:12 IST
The government’s decision to declare the old Rs 500 and Rs 1,000 notes invalid has left many people with huge unaccounted-for cash, and they are now looking for desperate ways to convert the money into ‘white’. Here are some of the tricks they have resorted to:
Full payment in advance
The wedding season is on. Where you need to pay a fraction of the bill in advance for the marriage functions, some customers are making full payments in advance. An owner of a marriage palace in Zirakpur on the condition of anonymity said, “Most of the customers are ready to pay immediately, and are not doing bargaining which is unusual. People have paid in advance even for marriages scheduled in January and February.”
All cash, no cheques
A marriage palace owner said while they are accepting cheques, people are insisting on cash payments. “We are facing the heat but are left with no option but to accept the cash in old notes as our business has already suffered a lot,” he said.
‘Please adjust our money’
Can we deposit Rs 2.5 lakh in your bank account? This would sound familiar to many residents as this is what many people are asking each other. They are approaching friends, neighbours or whosoever they can, after the government’s announcement that deposits over Rs 2.5 lakh would be under the scanner. “I got a call from the parents of my son’s classmate if he could get Rs 2.5 lakh deposited in my account,” said Niharika Jain. The response varies from person to person. Those who know it can invite the taxman at their doorstep excuse themselves but some others are being nice enough. There are some others who say they will do it for a price.
Cash in employees’ account
Some of the companies have asked their employees to provide their account numbers so that the management can transfer its money into their accounts. “We have been asked to give an undertaking before the amount is transferred to our account that we will be paying them back,” said a man who identified himself only as Rahul, working in a private company.
Gold the best bet
Gold has been the first choice of those who are hordes of money with them. Some have bought Rs 10 grams for Rs 50,000 when the rates were Rs 30,000; and they say that they don’t even know whether they have made a wise investment. Many jewellery shops haven’t opened since tax sleuths landed at jewellery shops across the country.
Cash at 30% cut
There are reports that some people are exchanging their Rs 500 and 1,000 notes with currency notes of lower denomination at a heavy price. Some, it is learnt, are paying Rs 1 lakh and getting between Rs 70,000 and Rs 80,000 in return.
By the way | Hefty discounts at salons
Some salons in the city are offering hefty discounts and offering schemes to customers even inviting Rs 500 and Rs 1,000 notes. Varun Prashar of Sector 4, Panchkula, said, “I went for a haircut in Sector 17 where I was offered various schemes. I was told that they are fine with the old notes if I take their offers.”