Rahul Mehta Gandhinagar LsCandidate

How will X who has Rs 500 notes worth say Rs 1 crore can convert all his notes into Rs 100 notes
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Say he finds Y whose annual income is Rs 100,000 only.
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Then X can give Rs 100,000 in Rs 500 notes to Y, Y deposits in bank, takes out Rs 100 notes of 5% less amount and gives it to X. Say X gives commission of 5%. This is viable, As per trust issue, Y can first take loan of Rs 100,000 against his FD or some asset, take Rs 95,000 worth currency notes of Rs 100 from bank, give to X, and take Rs 500 notes from X as spot transaction - no delay or no waiting.
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Now what is the max amount X can do?
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X can claim that he had 100 gram of gold and he had sold on 1-nov-2011, and got Rs 300,000 for that gold. Again, there is no tax liability of having 100 gram of gold !!! So X can convert Rs 300,000 worth Rs 500 notes into Rs 100 notes !!
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if X is woman or if X has wife or female close relative, then X can claim that he sold 500 gram of gold before 1-nov-2016 and deposit Rs 15,00,000 worth Rs 500 notes and get Rs 100 notes of same amount. A woman can keep 500 gram of gold without tax liability or breaking tax laws !!!
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So there are several ways to convert black money of crores in Rs 500 notes into black money of Rs 100 notes or new Rs 2000 notes
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