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Demonetization

17 November 2016

Is it illegal to accept a currency even though its not a legal tender? Is it illegal to accept Rs. 500 (Old note) as a consideration after 10th November? Assuming its legal to accept, If they are accepted, can they be exchanged or deposited?

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3 Replies

Dharmesh (Student) (1025 Points)
Replied 17 November 2016

If you or your business is not in the prescribed exemptions then u cannot accept old notes after 8th nov..if your records show that u have accepted those after 8th midnight then the question of depositing it doesn't arise coz it's illegal tender and just a piece of paper..so as you asked to assume it to be a legal tender you will have to make your records to show that its accepted on or before 8th nov for anybody to assume the above..

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 17 November 2016

If your business is one that is specified by govt.in govt.for this purpose eg.petrol pumps then you can accept ₹500/1000 n notes after 8th Nov.also that too on maintaining proper records, Otherwise, you cannot accept.
So, it is not adviced to accept these notes after 8th Nov.