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Effect Of Demonetisation In India

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demonetisation in india

Effect Of Demonetisation In India

Demonetisation happened on 08.11.2016. Perhaps it was such a decision after independence which affected each and every person of India whether its politician, bureaucrat, house wife, Labour etc.

Decision of Demonetisation was taken by our honorable PM Narendra Modi with a very good intention to reduce corruption & use of Black money from the economy, to bring transparency in the economy.

This was the decision which shook whole economy, everybody like every sector of the economy start debated about the impact of the same.

Advantages:

  1. 1. Demonetisation helped government in tracking black money.
  2. 2. People disclosed their income by depositing money in their bank accounts.
  3. 3. Demonetisation pushed Indian economy towards becoming cashless.
Disadvantages:
  1. 1. Destruction of old currency units and printing of new currency units involve cost which is being borne by the government.
  2. 2. Demonetisation move targeted the black money, but many people who had not kept cash as their black money and rotated or used that money in other asset classes like real estate, gold and so on were not affected.
  3. 3. Demonetisation had very negative impact across the certain with high level of cash transaction in restaurants, electronics, jewellery, luxury brand.

Conclusion: Demonetisation has both advantages and disadvantages. Demonetisation alone cannot fight parallel economy and eliminate black money. Several other supportive measures are required by the government to change the economy for good. This becomes even more important when there are other related moving parts such as goods and services tax (GST), clean-up of the banking system, real estate sector reform and others going on at the same time.

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Tax planning

Tax planning is the analysis of one's financial situation from a tax efficiency point of view so as to plan one's finances in the most optimized manner.

GST registration

For GST, the term Aggregate Turnover implies all provisions made by the assessable individual whether all alone or sake of a foremost.

Return filing

A tax return is a form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information.