4 ms·

>>If you want to buy a house which is sold for 20 million INR , value of same property is 5 million on papers (to evade house tax etc. ) and rest of the money i

by kamaal 10y ago

>>If you want to buy a house which is sold for 20 million INR , value of same property is 5 million on papers (to evade house tax etc. ) and rest of the money is paid in cash or through some black money . None of this changes even after this. There is a reason why this happens. Try getting a plan approved from any government agency without bribe. Or getting raw material like cement and sand passed through checkposts without bribe. Builders take black cash because they have to work with an ecosystem where bribes are common, they can't pay those bribes through legally accepted white money for the obvious reasons. Now this is just one instance I'm talking about. If you start building a house you will notice how many such interactions you will have to do where money is exchanged in non-taxable ways. You are basically fighting against an highly corrupt citizenry. >>Real estate stocks started sinking down 5 days straight and are expected to sink further after this move. Pray, that the builders don't default on their big loans to banks. Or a stock market crash is on hands, and may be a tax payer funded payout after. >>Yes it causes inconvenience to the people but as a tax payer and contributor to the economy I dont mind small inconvenience for greater good. This changes nothing. Corruption is a way of life in India. You will end up fighting everything and everybody and still get nothing out of it. Because people are dishonest. And please! this middle class salaried virtuousness is hypocrisy. Salaried classes are not honest because of choice but because of lack of opportunity. Producing fake rent receipts and medical receipts for tax deduction is common in office places.

DesiLurker 10y ago
one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? Also, businesses are corrupt because they dont have a choice, running you businesses clean & paying taxes does not precludes you from having to 'service' the IT dept & netas. So it creates an environment of competitive disadvantage for them. at their level they really cant do much to change the game, just play it. the salaried class is doing these infractions again because poor tracability of transactions hence exponentially larger effort needed to audit. secondly there is a very common sense of 'we are being fleeced' in salaried class so they try to do what they can. All of this is an argument to fix these large problems not leave them alone with cynicism.
- kamaal 10y ago
  >>one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? Last time I checked its still legal to trade in cash. They didn't ban cash, they just swapped notes. And bulk of the black wealth isn't even in cash. >>Also, businesses are corrupt because they dont have a choice, running you businesses clean & paying taxes does not precludes you from having to 'service' the IT dept & netas. It actually just makes it a whole lot harder, making it difficult for people to do business. This is also known as 'slowing the growth'. Then you have a situation where you will prefer black money over stagnation, like many already do today. >>secondly there is a very common sense of 'we are being fleeced' in salaried class so they try to do what they can. That's really some strange definition of getting fleeced, because salaried classes don't even contribute to the bulk of the taxes. Plus most salaried classes didn't pay taxes to build the infrastructure that already exists and most of it exists because of the taxes non-salaried people pay. >>All of this is an argument to fix these large problems not leave them alone with cynicism. But none of this fixed any problem.
  - DesiLurker 10y ago
    >> one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? > Last time I checked its still legal to trade in cash. They didn't ban cash, they just swapped notes. And bulk of the black wealth isn't even in cash. And How are they going to acquire the swapped cash? by declaring the assets and income so they's come under IT radar, right? isnt that the core reason behind doing this? to connect money with individual. Once the money is 'whited' how willing do you think after this they'll be willing again to turn it into black & go through this ever painful cycle again? What do you think happens to the 60/40 real estate transactions after this? why do you think real estate prices are falling? Its because its pricing in the writing on the wall. So if you take away real estate how many major avenues are left out there to park black money? So ya you can have your dark cash you cant just cant buy a whole lot with it. In fact I thought as a side effect this would be great time for cryptocurrencies in India. >> That's really some strange definition of getting fleeced, because salaried classes don't even contribute to the bulk of the taxes. Ah yes, the romney 47% argument. the problem with these arguments is it conveniently ignores the actual portion of overall income that goes to salaried class. and do this over decades & you've got massive wealth inequality thats baked into the system where if anything is done to reverse it quickly gets labeled as socialism/populism. >> This is also known as 'slowing the growth'. yes, I agree in short term, but look at multiplier effects in longer term. if most transactions are white there is less chances of money getting parked into rentseeking assets like realestate. realestate falling is good for economy as one mans income is another mans expenses otherwise. more productive assets & more vibrant economy. Do think about this. >> But none of this fixed any problem. Not yet, but its only been a week. these are the birth pangs of a new India. the real question is will you start seeing things turn around before the next elections or not. I think so ;-)

by kamaal 10y ago

DesiLurker 10y ago

one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? Also, businesses are corrupt because they dont have a choice, running you businesses clean & paying taxes does not precludes you from having to 'service' the IT dept & netas. So it creates an environment of competitive disadvantage for them. at their level they really cant do much to change the game, just play it. the salaried class is doing these infractions again because poor tracability of transactions hence exponentially larger effort needed to audit. secondly there is a very common sense of 'we are being fleeced' in salaried class so they try to do what they can. All of this is an argument to fix these large problems not leave them alone with cynicism.

kamaal 10y ago
>>one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? Last time I checked its still legal to trade in cash. They didn't ban cash, they just swapped notes. And bulk of the black wealth isn't even in cash. >>Also, businesses are corrupt because they dont have a choice, running you businesses clean & paying taxes does not precludes you from having to 'service' the IT dept & netas. It actually just makes it a whole lot harder, making it difficult for people to do business. This is also known as 'slowing the growth'. Then you have a situation where you will prefer black money over stagnation, like many already do today. >>secondly there is a very common sense of 'we are being fleeced' in salaried class so they try to do what they can. That's really some strange definition of getting fleeced, because salaried classes don't even contribute to the bulk of the taxes. Plus most salaried classes didn't pay taxes to build the infrastructure that already exists and most of it exists because of the taxes non-salaried people pay. >>All of this is an argument to fix these large problems not leave them alone with cynicism. But none of this fixed any problem.
- DesiLurker 10y ago
  >> one by one my dear, one by one. atleast you'll agree that this move makes most of the cash traceable, right? > Last time I checked its still legal to trade in cash. They didn't ban cash, they just swapped notes. And bulk of the black wealth isn't even in cash. And How are they going to acquire the swapped cash? by declaring the assets and income so they's come under IT radar, right? isnt that the core reason behind doing this? to connect money with individual. Once the money is 'whited' how willing do you think after this they'll be willing again to turn it into black & go through this ever painful cycle again? What do you think happens to the 60/40 real estate transactions after this? why do you think real estate prices are falling? Its because its pricing in the writing on the wall. So if you take away real estate how many major avenues are left out there to park black money? So ya you can have your dark cash you cant just cant buy a whole lot with it. In fact I thought as a side effect this would be great time for cryptocurrencies in India. >> That's really some strange definition of getting fleeced, because salaried classes don't even contribute to the bulk of the taxes. Ah yes, the romney 47% argument. the problem with these arguments is it conveniently ignores the actual portion of overall income that goes to salaried class. and do this over decades & you've got massive wealth inequality thats baked into the system where if anything is done to reverse it quickly gets labeled as socialism/populism. >> This is also known as 'slowing the growth'. yes, I agree in short term, but look at multiplier effects in longer term. if most transactions are white there is less chances of money getting parked into rentseeking assets like realestate. realestate falling is good for economy as one mans income is another mans expenses otherwise. more productive assets & more vibrant economy. Do think about this. >> But none of this fixed any problem. Not yet, but its only been a week. these are the birth pangs of a new India. the real question is will you start seeing things turn around before the next elections or not. I think so ;-)