Rahul Mehta Gandhinagar LsCandidate

How CAs are converting old notes into cash
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(1) Rich finds an illietarte tribal with all IDs etc. Opens his bank account. Deposits Rs 20 lakh of cash. Rich does RTGS to 20 gold sellers and buys gold of Rs 1 lakh from each (only aadhar card needed, no PAN id needed for purchase below rs 200,000). The income tax dept can now search for tribal for unpaid taxes of Rs 6 lakhs !!!
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(2) Rich finds a dying Poor with no assets but a PANID. Rich deposits Rs 50 lakh in his account, buys gold and Rich keeps the gold. The Rich gives Rs 50000 to family of dying man. The man may die in few months. The income tax dept will issue him notice in oct-2017 !!!
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(3) Rich buys commodities like copper, tea, wood, plastic granules etc from a real trader who has huge unsold inventory. The bill date will be 1-nov-2011. The name on bill will be some arbit person. Govt earns VAT = 5% to 12% depending on commodity. Then Rich has to dispose it of gradually without bill. Govt gains = 5% to 12%.
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All gains will be washed out due to increased import in gold via legal means or smuggling, and huge increase in volume of Rs 50 notes. All corrupt , criminals and tax evaders will now keep only small notes and gold !!!
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So overall, the step will do more damage than good.