Question

advantages of Demonetisation​

Answer 1

Answer:

Advantages of Demonetisation

This step will support the government to trace illegal money. Those people who have illegal money are now expected to dispense income and present PAN for any legitimate financial activities. The government can get a tax return for the income on which tax has not been paid.05-Jun-2020

Answer 2

Explanation:

Merits Of Demonetisation:

1. The Demonetisation plan will help India to convert into corruption-free. Those entertaining in accepting bribes will cease from corrupt methods as it will be difficult for them to retain their illegal money.

2. This step will support the government to trace illegal money. Those people who have illegal money are now expected to dispense income and present PAN for any legitimate financial activities. The government can get a tax return for the income on which tax has not been paid.

3. The movement will put an end to the funding to the illegal activities that are growing due to unaccounted funds flow. Forbidding high-value money will rein in unlawful activities like terrorism etc.

4. The prohibition on high-value money will also control the threat of capital laundering. No such action can easily be traced and the income tax administration can find the people involved in money laundering business.

5. This action will end the flow of fake currency. The maximum of the false currency put in the transmission is of the high-value and the stopping of 500 and 1000 rupees notes will drop the circulation of fake money.

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