Money And Money For Money

1240 Words5 Pages
So, people who can explain how they earned the money also show that they been paying the taxes are allowed to keep it, but people with holding more than 250,000 rupees in cash has to explain the source of the money to tax authorities. People found them selves lacking the money for basic transactions, like buying supplies and retail businesses came to a standstill because people hoarded the little cash they had for supplies. The government did not print the new bills until after the announcement and not did it recalibrate ATM to dispense the new bills. There was long lines formed at the few ATM that were operating, but many of them ran out of bills. The printing presses have only churned out more than $50 billions rupees, but the government was initially forced to limit ATM. ATM was limited to give out only 2,500 rupees and banks was limited to give out 24,000 rupees per week. About a third of business India is done with black money and in a heavily regulated economy. Government officials invest much of this money in real estate and not only is the property purchased with black money. The sellers pay less tax than they should because the prices have been understated. So if people just start hoarding the new bills? The government say that in order to work and plan has to inflict enough pain on tax avoiders that they change their behavior. If people keep their money in banks and more will be available for lending or people will become accustomed to paying taxes. There are many

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