Demonetization has had its drastic effects on the black money hoarders in the country.
Now, it has been more than 2 months since this initiative was launched. Yet, many people still possess old currency notes worth Rs 500 and Rs 100. Possession of these notes will now invite the wrath of the authorities. The Government has brought up an ordinance under which possession and transfer of Rs 500 and Rs 1000 currency notes will be a punishable offense.
Any person who is having more than 10 old currency notes after December 30, 2016 could invite a fine of Rs 50,000. Any such offender will have to face legal action and the municipal magistrate will preside over any such case when it is reported.
Those who are still hoarding such notes can deposit them in Reserve Bank of India up to March 31st, 2017. However, as per the latest directives as on January 25th, 2017, the Reserve Bank of India is also not accepting these notes and possessors of such banned notes are in trouble.
Those having excess wealth not matching their known source of income have to disclose their wealth till March 31, 2017 and will have to pay 50 percent tax if they wish to escape the noose of the law.
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If I draw 20,000 from my bank account in Rs.500 and Rs.1000, how can I be accountable for that and be fined?