This End Is A New Beginning Actually.
Pickup any social media platform (even something as personal and constantly close to us as WhatsApp) and you will only see one headline trending, and that is the discontinuance of `500 and `1000 rupees notes in a historic decision taken by our PM be it through serious messages or in funny memes.
But in all of this hustle and bustle the important point that we all seem to mostly miss out on is the long term repercussions that this national move will have on the common public, the aam janta. Apart from putting a heavy arrest to the black money in our nation and largely levelling the economic strata in the society, this move might possibly result in a long spell of deflation in the coming next few months.
What does that mean for a common man? That means the market may expect a drop in the gold, stocks and even commodities prices. Also banks may be in a better position to lend more money to people considering if the hard cash is being deposited in the banks right now. That means more financial loans will be given out. Credit will become easier and interest rates may come down.
The decision will also pave in way for more cashless transactions via credit/debit cards. And in effect, now undocumented lending and borrowings will come to a halt in the rural sections.
Even though the decision has faced severe criticism from many for causing hassles to general masses, most people are optimistic about this decision that taken the complete nation by a sure surprise. Whether the future is bright or bleak only time will tell; in the interim we must hope for the best and ensure proper steps to support this fight against black money.
Below are a few tips for you to keep in mind in these testing times.
- Do not rush. It is a very wrong notion that you do not have time. You have time until December 30, 2016, to deposit your sums in your respective bank accounts. In fact, even after December 30, 2016, these old notes can be exchanged from the RBI offices till March 31, 2017. The government will come up with further notifications and clarifications for easing problems.
- The department will keep track of every individual, their PAN card detail, and tally it with tax filing done during the end of the year. Submit proper and genuine documents.
- A lot of people are also accepting and depositing the cash balances of their friends and relatives blindly in their own account without proper documents. This can lead you invariably towards scrutiny on source of generating cash without proper KYC and correct source.
- Keep in mind that the Income Tax department will be constantly on check for transactions of cash exchanges beyond Rs 2.5 lakhs or deposit in savings account beyond this limit. Hence, keep a note of your existing account balance ceiling before depositing them into your account.
- ATMs will not accept cash deposits. Hence, deposit the amounts in your respective bank branches.