People should understand that what is being deposited in banks is not black money

Modi government is misleading the people by making announcements that over Rs. 5 lakh crore in old currency has been deposited in the banks without declaring or suggesting what is the colour of this money. People should understand that practically almost all of this money would be white money or tax paid money. For instance, whatever money I had in cash at home, I deposited the same in my bank and have since then withdrawn more than what I had deposited to meet my household expenses. This is what most of the people would have done. The money deposited in banks will not be black money or unaccounted money as nobody would risk depositing that money in the bank as that money would be not only be taxable but also maybe subject to penalty. More important reason why people will not deposit unaccounted money in banks because that would open the to investigation. So they would launder the money in some way or decide to write it of as loss. This money also includes money that would be deposited by companies / businesses who had made sale till the 8th of Nov which they would also deposit in the banks.

So I would suggest that people should not think this is black money collected by the government. It is possible that some black money may be deposited by some people in trying to slip it through with the hope that it may not be highlighted by the government’s monitoring system but most of the black money would remain with the hoarders of black money which they may rid of it by whatever means.

Some estimates of black money would only be known on December 30, 2016 which will be equal to the mount of Rs. 500 and Rs. 1000 notes which are not returned / deposited in the banks.

Avinash Narula

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