Demonetization of bank currencies was one nimble execution that India was long awaiting. Though hurried action had created a lot of tension and confusions among the public, people embraced the idea in the succeeding days. Being an individual was fine because RBI was doing everything under their power to educate the people on ‘What’ and ‘How’. But many small-scale companies, manufacturers, employers, businesses, charity trusts, NGO’s etc. who doesn’t have a finance officer or professional in -house actually took the bite hard. Here are few FAQ’s that rolled across the internet regarding demonetization that would melt some ice off.
Ans: Of course, you should deposit all currencies in the bank. If your organization is registered and working in par with all legal formalities there is nothing to worry. If in case any income tax inquiries are actioned just be sure with your paperwork’s.
Ans: NGO’s & Charity trusts are the most targeted organization which people use to launder their black money in the present scenario, offering a percentage in return. But this is against the laws and the objective of demonetization is tampered which might put you in legal trouble.
Ans: Legally No. All cashbooks or accounts need to be legally sanctioned by the respective authority in order to avoid any confusion or legal trouble. In such case, backdating is not possible.
Ans: Many would donate their old currencies to NGO’s, that’s common. In order to keep your side clear, just record a video while opening and counting the money. Also keep something in the frame to prove the date like a newspaper of that day or google calendar etc. to prove the authenticity of date. Deposit the money immediately to the bank.
Ans: Legally you shouldn’t. If they are insisting, ask to transfer the money online or using a cheque. This way you can avoid trouble if any income tax verification comes.
Ans: RBI had issued orders to extend the legal validity of 500 rupee currencies to use under emergency situations on Government hospitals & pharmacies until December 15, 2016. However, the same is not applicable for private medical facilities or clinics. But several state governments had requested medical centers to not deny emergency treatment to any patients in absence of new currencies, which shall be dealt at a later point in time.
Ans: Specified 500 rupee currency shall be used until 15th December 2016 at
Ans: There is no restriction to deposit money into your bank account. If you have a deposit above INR 50,000 then you must provide a copy of your PAN card, if not linked previously. So deposited money can be used for all sorts of transaction including loan payment, other than liquid withdrawals subjected to RBI revision.
Ans: You are free to use CDM’s or Cash Depositor Machines by respective banks to deposit money into your account. It is more like electronically depositing cash rather than visiting the deposit counter in the bank. But most CDM’s are limited to INR 50000.
Ans: Many queries have arisen regarding marriage and related expenses. Marriage dates are mostly fixed before November 8th and sudden demonetization notification sends many into a panic. No need for worries, all transactions shall be done using electronic fund transfers like NEFT, RTGS, IMPS, UPI, Net Banking, and Bank Wire. A cheque can also be used to meet the expense. Also, to meet local demands a person can withdraw up to INR 250000/- from their bank account provided the marriage date in before 31st December 2016 and the person is KYC compliant with the bank.
Ans: To ensure unhindered agricultural operations RBI allow farmers to withdraw INR 25000/- per week from their loan account (including Kisan Credit Card limit) or savings account provided they are fully KYC compliant. The specified notes (demonetized) shall also be used for the purchase of farming needs from Government bodies.
Ans: You may provide a hand written request letter to the bank manager about entrusting one of you close companion to deposit the money to bank account. The so entrusted person should bring a Proof of Identity at the time of deposit.