How Indians Covert their Black Money After Ban on Rs 500 & 1000 Notes
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Indians are inventing ways to try and hide their money from the tax inspector, as the government attempts to abolish vast undeclared wealth.
The sudden announcement by Prime Minister
As millions of Indians scramble to convert savings by putting them in banks, some with tons of so-called “black money” are looking for loopholes in the system.
JEWELRY
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The source added that jewelers were paid anywhere between 20 and 65 percent above the going rate by buyers snapping up the precious metal with old notes.
WEDDING INDUSTRY
Retailers and wedding planners say they have been bombarded with frantic calls from people looking to buy large-item purchases from anyone willing to accept the old notes.
According to reports, In Mumbai, a senior marketing executive that organizes large weddings was debating with his company whether to accept payment in the old money.
People are quoting 30 million rupees ($450,000) in (old) 1,000 rupee notes which is not unusual for a wealthy Indian family’s wedding celebrations. There is loads of black money.
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RELATIVES AND FRIENDS
Some are looking up friends, domestic staff, and even senior citizens who are prepared to legally exchange the cash in small denominations.
Banks have to report to tax authorities anybody depositing over 250,000 rupees ($3,765) and being found to be holding undeclared cash can lead to a penalty of 200 percent of the tax owed.
TRAIN TICKETS
Many unusual methods of exchanging cash are being talked about on social media.
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One tweet described how people were paying their travel agents for expensive first-class train tickets with old bills and then canceling them later to get reimbursed in the new currency.
State-run
The railways will refund tickets worth over 10,000 rupees booked on November 9, 10, and 11, but not in cash; refunds will be done through cheques or bank transfers.
WATCH: Millions Are Watching This Man Wash A Rs. 2000 Note
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MULTIPLE BANK ACCOUNTS
A senior citizen in Mumbai with around 500,000 rupees in undeclared cash told
“For smaller sums, there are ways to change the money,” a partner at an investment firm told Reuters.
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