Chartered Accountant
861 Points
Joined June 2012
According to me, I feel that it may not prevent from creating black money in future. However, withdrawal of legal tender chatacter of bank notes in the denomination of Rs.500 & Rs.1000 will make all black money hidden a waste paper. This will also prevent one from distribution of cash for elections, illegal activities etc.
The government has also made various schemes from bringing out the undisclosed money/income or assets through IDS and amending Benami Tranactions Act etc. If one has declared the undisclosed income sincerely, there is no question of black money in his hand it can be deposited with bank.
Thanks.