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> Workaround always exist Of course. Every system has workarounds. > People still prefer to pay, as much as possible in cash, to save on that huge registratio

> Workaround always exist Of course. Every system has workarounds. > People still prefer to pay, as much as possible in cash, to save on that huge registration fees. For large real-estate companies, like Aparna Constructions in Hyderabad, most of the transaction is with fully accounted money. About 10% of the transaction is with un-accounted for cash. Cash transactions are happening with smaller builders, but even they are finding it difficult to find buyers with a lot of liquid cash. Now most of the money is being moved through faceless anonymous companies, and those are a step above unaccounted cash, when it comes to tracking and monitoring cash flow in the economy. > This demonitization was just a smoke in people's eyes. Perhaps, but along with the introduction of GST, I now find even traditional traders who usually prefer not to give a bill with a sale (for construction items, cement, steel, electrical wires, equipment, etc) are insisting on a GST bill. It was a really big surprise to me. Also, this is a political masterstroke. Most of the country is below middle class and hardly every see a 2000 Rs. note. Most of them don't have much liquid cash. Most of them are happy that the rich are finally 'getting it' as in, finally there is someone in power who is not afraid to walk the talk. Whether this is just smoke and mirrors is a different debate. But for most of the country, most of the poor people in the country, it's a eye-brow raising move, a very big talking point for worker level party operatives. My personal opinion is that these sorts of actions are required to take the populace from cash to digital transactions. Waiting for natural course of movement to digital transactions will take an un-accptably long time. With demonitization, many farmers, people in remote villages, even street vendors are using digital transactions. Credit-card use has increased, digital payments from mobile phones has increased. Most importantly, the concept of digital transactions, virtual cash, in some very remote places, even the concept of bank accounts has entered into the greater public consciousness. > Those big thugs are still scaming the banks and fleeing the country with billions of Rupees. This happens in even the most developed countries. Even in the US, Europe, UK etc. The only difference is there the money is transferred to accounts in the Cayman islands, here in India, perhaps some other route.

deleted 8y ago
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kamaal 8y ago
>>Cash transactions are happening with smaller builders, but even they are finding it difficult to find buyers with a lot of liquid cash. Its impossible to register a property in Karnataka, without a PAN card/number. So in short for high value transaction its already possible to have tax accountability. Same with jewelry. The question is that of enforcement. You don't need to demonetize anything for these things. >>Perhaps, but along with the introduction of GST, I now find even traditional traders who usually prefer not to give a bill with a sale (for construction items, cement, steel, electrical wires, equipment, etc) are insisting on a GST bill. It was a really big surprise to me. What is going to be a bigger surprise to you is discovering a few years down the lane that a full scale parallel unregulated economy is in motion. In fact that is already the case with a lot of small time things now. >>Also, this is a political masterstroke. Lol >>Most of the country is below middle class and hardly every see a 2000 Rs. note. Middle class these days is like people who make a good 30-40K a month. These people see a lot of high value notes. >>Most of them are happy that the rich are finally 'getting it' What do you think the year is? 1985? The rich don't exactly keep their money beneath their mattress these days. >>My personal opinion is that these sorts of actions are required to take the populace from cash to digital transactions. >>With demonitization, many farmers, people in remote villages, even street vendors are using digital transactions Before you implement all these pie in the sky electronic transaction ideas. Please ensure people get electricity. In Bangalore in weekdays there are half a day power cuts. How should public do electronic transactions without electricity?.
- dingo_bat 8y ago
  > Its impossible to register a property in Karnataka, without a PAN card/number. So in short for high value transaction its already possible to have tax accountability. Same with jewelry. The question is that of enforcement. You don't need to demonetize anything for these things. How do you explain the actual change that has occured in the real estate market then? > What is going to be a bigger surprise to you is discovering a few years down the lane that a full scale parallel unregulated economy is in motion. Of course. Nobody says that this will kill all illegal activity for all time in this country of 1.25 billion people. But there was a big positive effect due to demonetisation. Even if it dents the black economy for 5 years, that's good enough. We'll take more such actions when needed. > Middle class these days is like people who make a good 30-40K a month. These people see a lot of high value notes. https://www.livemint.com/Opinion/TvcFydQcN6KEFkvdW7BprM/Indias-burgeoning-middle-class.html https://www.livemint.com/Opinion/TvcFydQcN6KEFkvdW7BprM/Indi... From the article: vast majority of middle class in india earns less than $4 per day. A ₹2000 note is 10 days wages. Yeah, I don't think those guys will ever save that much while still surviving. > The rich don't exactly keep their money beneath their mattress these days. Yup, they were forced to move it from there in 2016. Some moved it to bitcoin, as described in TFA. > Before you implement all these pie in the sky electronic transaction ideas. Please ensure people get electricity. Bullshit. Electrification and economic reforms can happen simultaneously in the world's seventh largest economy. For example, 2018 was the first year when all villages satisfied the criteria for being electrified. Long way from 24x7 electricity, but hey, it's a start.

deleted 8y ago

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kamaal 8y ago

>>Cash transactions are happening with smaller builders, but even they are finding it difficult to find buyers with a lot of liquid cash. Its impossible to register a property in Karnataka, without a PAN card/number. So in short for high value transaction its already possible to have tax accountability. Same with jewelry. The question is that of enforcement. You don't need to demonetize anything for these things. >>Perhaps, but along with the introduction of GST, I now find even traditional traders who usually prefer not to give a bill with a sale (for construction items, cement, steel, electrical wires, equipment, etc) are insisting on a GST bill. It was a really big surprise to me. What is going to be a bigger surprise to you is discovering a few years down the lane that a full scale parallel unregulated economy is in motion. In fact that is already the case with a lot of small time things now. >>Also, this is a political masterstroke. Lol >>Most of the country is below middle class and hardly every see a 2000 Rs. note. Middle class these days is like people who make a good 30-40K a month. These people see a lot of high value notes. >>Most of them are happy that the rich are finally 'getting it' What do you think the year is? 1985? The rich don't exactly keep their money beneath their mattress these days. >>My personal opinion is that these sorts of actions are required to take the populace from cash to digital transactions. >>With demonitization, many farmers, people in remote villages, even street vendors are using digital transactions Before you implement all these pie in the sky electronic transaction ideas. Please ensure people get electricity. In Bangalore in weekdays there are half a day power cuts. How should public do electronic transactions without electricity?.

dingo_bat 8y ago
> Its impossible to register a property in Karnataka, without a PAN card/number. So in short for high value transaction its already possible to have tax accountability. Same with jewelry. The question is that of enforcement. You don't need to demonetize anything for these things. How do you explain the actual change that has occured in the real estate market then? > What is going to be a bigger surprise to you is discovering a few years down the lane that a full scale parallel unregulated economy is in motion. Of course. Nobody says that this will kill all illegal activity for all time in this country of 1.25 billion people. But there was a big positive effect due to demonetisation. Even if it dents the black economy for 5 years, that's good enough. We'll take more such actions when needed. > Middle class these days is like people who make a good 30-40K a month. These people see a lot of high value notes. https://www.livemint.com/Opinion/TvcFydQcN6KEFkvdW7BprM/Indias-burgeoning-middle-class.html https://www.livemint.com/Opinion/TvcFydQcN6KEFkvdW7BprM/Indi... From the article: vast majority of middle class in india earns less than $4 per day. A ₹2000 note is 10 days wages. Yeah, I don't think those guys will ever save that much while still surviving. > The rich don't exactly keep their money beneath their mattress these days. Yup, they were forced to move it from there in 2016. Some moved it to bitcoin, as described in TFA. > Before you implement all these pie in the sky electronic transaction ideas. Please ensure people get electricity. Bullshit. Electrification and economic reforms can happen simultaneously in the world's seventh largest economy. For example, 2018 was the first year when all villages satisfied the criteria for being electrified. Long way from 24x7 electricity, but hey, it's a start.