Scrapping of Rs 500, Rs 1,000 notes: Here's how hoarders are disposing off their black money

Zee Media Bureau

New Delhi:  Declaring a "decisive" war against black money and corruption, Prime Minister Narendra Mod has announced that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender.

People holding notes of Rs 500 and Rs 1,000 can deposit the same in their bank and post office accounts from November 10 till December 30.

However, people, sitting on a huge pile of untaxed cash have found some really interesting way to dispose off the amount, as per a report in Economic Times.

There are couple of rescue path which these people are using viz, investment in gold, exchange via religious places, paying advance salary to employees etc.

A Vadodara real estate developer has paid six months’ salary in advance to 100 employees, most of whom are labourers, ET said.

In another instance, Mumbai shopkeeper has asked 25 employees of his to deposit Rs 40 lakh in their bank accounts and return the money to him in a couple of months. Many of these employees don't pay income tax, ET further reported.

Apart from this, people with huge cash are rushing to gold showrooms and buying high value gold to get rid of high denomination notes.

Interestingly, some are also rushing to temples to convert the high denomination notes, ET said.