Tough black money law may prevent people from depositing the unaccounted money in banks directly, leaving them opt for benamis for conversion of black money.
“Black money holders will have no option but to plan their deposits. They may use accounts of their friends and relatives to split their black money to evade income-tax scrutiny,” said a income-tax planner.
According to him, “Tax evaders could also use the Jan Dhan accounts of poor people to convert their old notes into the new ones. This warrants tax officials to track the unusual flow of money in Jan Dhan accounts.”
Apart from this, he said the demand for buying used jewellery also may increase. However, the demand for new gold jewellery may take a hit. The demonetisation may also impact the upcoming elections, which are heavily funded by black money.
