If you have kept some cash at home for daily needs, fuel, shopping, payment to maids, drivers, auto/cab commuting etc, then it must be in thousands and you need not worry.
You can deposit it in your bank account and withdraw ₹ 100 notes or use debit cards.
Any amount <= ₹ 2,50,000 is okay. Anything above that is taxable (according to existing slab rates)
If you have few lakhs (suppose 5-10 lakhs) at home or in form of loan given to someone and getting it back in ₹ 500 or 1000, then better deposit in account and pay tax as per existing slab rates :
Income from Rs 2,50,000 – Rs 5,00,000 - 10%
Income from Rs 5,00,000 – 10,00,000 - 20%
Income more than Rs 10,00,000 - 30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
suppose you have 10 lakhs cash, 2.5 lakh can go to bank account without any worry. For the rest 7.5 lakh you need pay 20% tax which is 1.5 lakh, and you can use total 8.5 lakh legally.
This is better than paying 20% to commission agents and creating more black money again. (unless you have too many lakhs or crores stacked up)
There are 2 main targets behind this announcement.
1. to stop fake currency sent from across border to sponsor terrorism and disturb economy.
2. to permanently eliminate money saved in huge amounts, made through corruption. this is mainly targeted at big political parties, politicians, builders, benamis, movie financiers etc.
Spending cash in elections will stop now. Banks have limited ₹ 100 notes, thats why the cap of 4000 per person per day is imposed for conversion and even cap on ATM withdrawls is imposed.
In sept, one dosa bandi wala declared 50 crores in income tax declaration scheme. Whose benami is he ? or did he really make 50 crores by selling dosas on street ?
The move will definitely hit con-grass who built India based on corruption for 60 yrs. UP, Punjab elections will be interesting.
anyone shouting foul or unable to sleep since last 2 nights is having stacks of ₹ 500, 1000 notes
All political parties, politicians etc keep huge cash ready for maintaining party workers, bribing ppl, election campaign etc.