No, it will not hit poor rather it will help counter poverty.

No, it will not hit poor rather it will help counter poverty. It will only badly affect those horded black money why BJP is trying to oppose move taken by RBI.The issue of black money stashed outside the country is also important but it should not be a condition for taking step in the country to counter the parallel economy.This measure will help poor 'aam aurats' and the 'aadmis'. BJP should suggest some steps but should not oppose it by quoting non access to banking facilities by poor and illiterate as it is misleading.BJP is worried about their own leaders those having black money.Attitude towards black money and the degree of tolerance and connivance of black money operators through political stalwarts is dangerous. Earlier the government as well as the political setup taking note of this growth of unaccounted money the better. The black money has emerged as a parallel economy and it is due to the failure of tax system through tax evasion and rapid growth of unaccounted money. It is a serious threat to stability and growth of economy as the black money stock is huge. It is increasing inequality in income and wealth, and a new type of class of rich is emerging.

The instances of black money is-

1. under representing the output or sales.

2. over reporting off the cost or misclassification of personal expenses by manufacturers, traders.

3. Undervaluing the true value of the property while registering on sales of assets

4. Not accounting for the value of property under power of attorney transfer (transfer at nil consideration).

5. private corporate investment by way of kick back from suppliers and contractors account.

6. under invoicing in relation to exports.

7. over invoicing of imports by private sectors and sale of import licenses, the premium of license fee.

8. excise duty evasion.

9. evasion duty evasion through under/mis invoicing of exports

10. evasion of major state taxes vis sales tax, state excise duty, and entertainment tax.

11. generation of black money by siphoning of public expenditure on state revenue as well as capital accounts is siphoned off in one form or another.

12. Black money is generated through local bodies also.

13. The rate of the growth of the black economy is faster than the growth rate of the country. Higher rates and multiple taxes have motivational effect of tax evasion, Political system