Black & White vis-à-vis Demonetization

of Rs. 500 & Rs. 1000 Currency Notes

In the edition of 10th November, 2016 of ‘The Statesman’ there is an observation ~ “Modi-sarkar’s expertise is limited to managing headlines”. This is surfacing more and more as the dust is settling down. Those who’ll deposit the demonetized Rs. 500 & Rs. 1000 currency notes above Rs. 1.5 lac will be booked by Income Tax for scrutiny who’ll of course have a jolt. However, there is no bar over cheque transactions and it’ll be a naïve assumption that a ‘parallel economy’ is not running on cheques. So, the black money to be surfaced by this demonetization will be ‘tip of the iceberg’. I believe the ‘terrorism’ business will easily absorb this shock so far as this is dependent on Indian currency (of course providing psychological relief) and not on Pakistan, Bangladesh or any other currencies.

Personally, I comply with Income Tax rules as I abhor being hounded by this authority if I don’t, but admire those who have the guts to face this ordeal. Otherwise, I don’t feel this divide between ‘Black’ and ‘White’ money is sacrosanct. The so-called ‘parallel economy’ run on ‘Black money’ has its profound benefit so long it boosts dynamism to the economy. Undeniably, it is at the cost of the development and public welfare projects which the Governments promote with ‘White money’. But who’ll weigh the relative social advantages yielded by these ‘parallel economies’! 

More By  :  Rajat Das Gupta

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Comments on this Blog

Comment TO: Ms. Bhakti Devi 27 November, 2016 My letter to The Editor, 'The Statesman' with the caption 'Colour of money and parallel economy' on this subject was published in its edition of 15 November, 2016 the 'link' of which is ~ Colour of money and parallel economy ` Published in 15th November, 2016 The letter was more or less a presentation in the same language. Maybe, a close scrutiny of it will clarify you the inner content of it more. Yours sincerely, Rajat Das Gupta

Rajat Das Gupta
27-Nov-2016 07:24 AM

Comment This is not an article. Just an opinion aired in a way that makes it hard for the reader to make sense of the opinion. Please ensure quality of the article by providing context and elaborating on statements made. Otherwise it looks like a comment without clarity rather than an article which can be read and understood on its own.

Bhakti Devi
20-Nov-2016 23:23 PM

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