Bad news for Credit Cards users. Be ready to throw CC in dustbin.

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https://twitter.com/nebula_world/status/1657287...
Now foreign international by Credit cards attracts 20% TCS. Now an issue for domestic spenders but it's a beginning of a new loot by government.
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Deal Cadet Deal Cadet
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You know there are some good people who declare their foreign visits in ITR as required by law.

Then there are few people who earn additional income by finding loopholes and curb in foreign visits, obviously not declaring in ITRs.

Could be a measure to find out such people who pay minimal to no tax but spends money equivalent to someone's annual salary in a single foreign visits.

I just thought of recent foreign visitors from my family network amd can say at least 3 families did this.

Deal Lieutenant Deal Lieutenant
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Not a big deal.... You can claim a credit for this TCS in tax returns!!!! 



You're making 'Rai ka Pahad' 🤦‍♂️


Pro Entertainer Pro Entertainer
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Typical youtube clickbait title! 😆

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Deal Lieutenant Deal Lieutenant
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Not a big deal.... You can claim a credit for this TCS in tax returns!!!! 



You're making 'Rai ka Pahad' 🤦‍♂️


The Alpha The Alpha
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so that means netflix , prime, agod, cloud providers etc kind of websites will also attract 20% tcs?

Deal Cadet Deal Cadet
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What a headline!!

Hunk Hunk
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matlab kuch bhi... TCS applied on international txns so we should be ready to throw cc in dustbin? kaha kaha se aate hain yaar 😂

Deal Cadet Deal Cadet
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You know there are some good people who declare their foreign visits in ITR as required by law.

Then there are few people who earn additional income by finding loopholes and curb in foreign visits, obviously not declaring in ITRs.

Could be a measure to find out such people who pay minimal to no tax but spends money equivalent to someone's annual salary in a single foreign visits.

I just thought of recent foreign visitors from my family network amd can say at least 3 families did this.

Hunk Hunk
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kartikxxx wrote:

so that means netflix , prime, agod, cloud providers etc kind of websites will also attract 20% tcs?

don't think so... right now netflix or prime or agoda txns are not categorized under international txns in credit cards afaik, so imo this doesn't apply here... can't say about cloud providers or vpn providers as I haven't transacted on them
Pro Entertainer Pro Entertainer
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Typical youtube clickbait title! 😆

Community Angel Community Angel
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You are telling that govt is taking income tax so throw your income in dustbin so not to pay tax 😛

Deal Subedar Deal Subedar
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TechINC wrote:

Not a big deal.... You can claim a credit for this TCS in tax returns!!!! 



You're making 'Rai ka Pahad' 🤦‍♂️


are you sure? what proof we will need to get return
Deal Subedar Deal Subedar
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kartikxxx wrote:

so that means netflix , prime, agod, cloud providers etc kind of websites will also attract 20% tcs?

No. Most companies are registered in india and have tied up with Indian gateways.. 

Analyst Analyst
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Yes, OP bro, you throw your cards first and motivate/encourage us too.

Deal Cadet Deal Cadet
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TechINC wrote:

Not a big deal.... You can claim a credit for this TCS in tax returns!!!! 



You're making 'Rai ka Pahad' 🤦‍♂️


youtuber log apne international transaction chupa rhe the, ab to dukh hoga h
Helpful Helpful
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sanklecha.mahaveer563 wrote:

Could be a measure to find out such people who pay minimal to no tax but spends money equivalent to someone's annual salary in a single foreign visits.

I just thought of recent foreign visitors from my family network amd can say at least 3 families did this.

Why would government not get to know about international spends on one's CC?
A spend on CC is a spend on CC - whether national or international. What am I missing?
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sanklecha.mahaveer563 wrote:

You know there are some good people who declare their foreign visits in ITR as required by law.

Then there are few people who earn additional income by finding loopholes and curb in foreign visits, obviously not declaring in ITRs.

Could be a measure to find out such people who pay minimal to no tax but spends money equivalent to someone's annual salary in a single foreign visits.

I just thought of recent foreign visitors from my family network amd can say at least 3 families did this.

20% is too much.

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ontherocks wrote:
Why would government not get to know about international spends on one's CC?
A spend on CC is a spend on CC - whether national or international. What am I missing?

All foreign credit cards payments including visa/master/amex/jcb/discover/diners club use USD currency (except RuPay card/UPI's native global network).

USD is not our currency, we have USD in our foreign reserve.

Most Indians don't understand a basic thing and they always said "My money is my money, who are you (Government of India) to decide where I can spend and where not."

Straight answer - No, its not your money. It is the property of GOI.

While individuals and businesses can possess and use Indian rupees. Ultimately, the currency is considered the property of the Indian government.

2nd most important thing, the GOI gives us Indian rupees to spend. I repeat i said "gives us Indian rupees" not foreign currency. When we convert our Indian Rupees to foreign currency, the value of our Indian Rupee depreciates.

What happens when the Indian Rupee depreciates is a different topic. Will write a separate essay on that some other time 😜

Now come back to your point - "A spend on CC is a spend on CC - whether national or international. What am I missing?"

You are missing the foreign currency spend part. Since, foreign currency is not our currency, GOI want us to spend less on foreign currency.

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abhishek012 wrote:

All foreign credit cards payments including visa/master/amex/jcb/discover/diners club use USD currency (except RuPay card/UPI's native global network).

USD is not our currency, we have USD in our foreign reserve.

Most Indians don't understand a basic thing and they always said "My money is my money, who are you (Government of India) to decide where I can spend and where not."

Straight answer - No, its not your money. It is the property of GOI.

While individuals and businesses can possess and use Indian rupees. Ultimately, the currency is considered the property of the Indian government.

2nd most important thing, the GOI gives us Indian rupees to spend. I repeat i said "gives us Indian rupees" not foreign currency. When we convert our Indian Rupees to foreign currency, the value of our Indian Rupee depreciates.

What happens when the Indian Rupee depreciates is a different topic. Will write a separate essay on that some other time 😜

Now come back to your point - "A spend on CC is a spend on CC - whether national or international. What am I missing?"

You are missing the foreign currency spend part. Since, foreign currency is not our currency, GOI want us to spend less on foreign currency.

Its not about the rationale why govt is imposing tax on foreign spends.
sanklecha.mahaveer563 seemed to go in a different track as if people get away with domestic spends on CC but with the new rule cannot get away with international spends on CC.
Hunk Hunk
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TechINC wrote:

Not a big deal.... You can claim a credit for this TCS in tax returns!!!! 



You're making 'Rai ka Pahad' 🤦‍♂️


So if I do an international transaction this month, I can expect tax return in May next year? Wow, that's not a problem at all, just one year wait to get my money back 

Hunk Hunk
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abhishek012 wrote:

All foreign credit cards payments including visa/master/amex/jcb/discover/diners club use USD currency (except RuPay card/UPI's native global network).

USD is not our currency, we have USD in our foreign reserve.

Most Indians don't understand a basic thing and they always said "My money is my money, who are you (Government of India) to decide where I can spend and where not."

Straight answer - No, its not your money. It is the property of GOI.

While individuals and businesses can possess and use Indian rupees. Ultimately, the currency is considered the property of the Indian government.

2nd most important thing, the GOI gives us Indian rupees to spend. I repeat i said "gives us Indian rupees" not foreign currency. When we convert our Indian Rupees to foreign currency, the value of our Indian Rupee depreciates.

What happens when the Indian Rupee depreciates is a different topic. Will write a separate essay on that some other time 😜

Now come back to your point - "A spend on CC is a spend on CC - whether national or international. What am I missing?"

You are missing the foreign currency spend part. Since, foreign currency is not our currency, GOI want us to spend less on foreign currency.

What kind of logic is this? 

My money is not my money but Government's money? So if tomorrow the government decides to take all the money from my bank account, I can do nothing? We are taxed twice for everything - once when we get salary and once when we buy anything. The tax is the part of my money that belongs to the government. The only time government can take money from my account is if I owe taxes or something like that. What I do with the rest of my money is none of government's business. 

The government owns the physical currency and coinage in your pocket. They can decide the value of money. However, you own the value of the money in your pocket. It's No different than a credit or debit card. The bank owns the card, You do not, but you're the beneficial owner of the money contained within. The government is paying us with money for our services. Although it's issued by them and technically own the coin and paper and ink, they can't just take it from us without reimbursing the value of it. 

Secondly, the value of Indian currency is dependent on a lot of factors. While spending INR to buy products with USD is bad, it's a small factor among the many many other factors that determine the value of a currency. Interest rates, inflation, political stability, import/exports ratio, public debts all play a part in it. The government can influence all of the above major factors, then why are they making life hard for a small percentage of the population who need to do foreign transactions? It's the duty of the government to make sure the currency is strong, not the citizen's. And even worse the government is punishing citizens by taxing them even when they have no choice but to transact in USD. And the government policies have been so good that the value of 1 USD has increased by almost 30 rupees in 10 years (34% rise), from about 54 10 years ago to 82+ today , by 15 rupees in the last 5 years, with a increase of 5 rupees happening in the last one year. 

And if the government wants us to spend less on foreign transactions, then what's next? No vacations abroad? All holidays in India or 50% tax? Tax on buying International brands? Ban on investing in US companies? Will I have to get permission from government stating where I can spend the money I have left after the double taxation? 

It's a stupid rule and some people are supporting it because they think the Government is doing it for the good of the people. They just want to tax you each and every way possible. That's the truth. There's no greater good. Supporting the government even when the things they do are dumb isn't the sign of a healthy democracy, neither is it patriotic. From what I know (correct me if I'm wrong), no other country has this rule, what makes India so special? 



Hunk Hunk
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sanklecha.mahaveer563 wrote:

You know there are some good people who declare their foreign visits in ITR as required by law.

Then there are few people who earn additional income by finding loopholes and curb in foreign visits, obviously not declaring in ITRs.

Could be a measure to find out such people who pay minimal to no tax but spends money equivalent to someone's annual salary in a single foreign visits.

I just thought of recent foreign visitors from my family network amd can say at least 3 families did this.

Sorry, I don't understand this.

After this announcement, won't they just exchange INR to USD or whatever currency they want to and just it instead of using a CC? 

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A_J wrote:

What kind of logic is this? 

My money is not my money but Government's money? So if tomorrow the government decides to take all the money from my bank account, I can do nothing? We are taxed twice for everything - once when we get salary and once when we buy anything. The tax is the part of my money that belongs to the government. What I do with the rest of my money is none of government's business. 

What's next? No vacations abroad? All holidays in India or 50% tax? Tax on buying International brands? Ban on investing in US companies? 

It's a stupid rule and some people are supporting it because they think the Government is doing it for the good of the people. They just want to tax you each and every way possible. That's the truth. There's no greater good. Supporting the government even when the things they do are dumb isn't the sign of a healthy democracy, neither is it patriotic. From what I know (correct me if I'm wrong), no other country has this rule, what makes India so special? 



Yes, Our money (Indian rupees) is the property of the Indian govt. We can't do anything, if govt decides to take all the money from our bank account.

But wait, think logical. We live in India, not North Korea. So, legally i'm telling the truth but pratically this will never happen in a democracy or atleast in india.

You can travel internationally but with a certain limit. 

For example - RBI rules related to Forex transaction -

If you want to make a transaction, you must follow the rules established by the Reserve Bank of India: According to RBI regulations, remittances of up to USD 25,000 (INR 20,42,200) are allowed per calendar year. As per RBI, travelers are permitted to buy foreign currency notes for only up to $3,000 for each visit.

Every country has its own Forex transaction limit. For example, during pandemic i heard Nepal and Maldives decrease their forex transaction limit up to USD 1,000 per calendar year.

There is another rule from RBI - You must declare FOREX that you bring into India more than the allowed limits. 😬

Already told in my last comment, Foreign currency is not our currency, GOI want us to spend less on foreign currency.

The more foreign currency we use, the inflation also increase. We are not USA and US Dollar is not our currency, which is accepted worldwide.

Everybody wants cheap petrol in India but we Indians never save our forex reserve (if you dnt know we purchase fuel from our forex reverse, which is US dollar. That's why govt impose so much taxes on fuel. If govt makes fuel cheaper then our forex reserve will be over).

Which healthy democracy you are talking about ? USA ? every countries have same type of rules. The matter of USA is different, US can do anything.

We are not lucky right now. It will take 50 years for Internationalization of Indian rupees (i am talking about 100% acceptance of Indian rupees worldwide).

Oh by the way, the reason for bringing this new rule is that Indians have started using more foreign currency these days. Indians going to Turkey, UAE and getting married.

Of course, the problem is not with the marriage. the main problem is everyone spend in foreign currency. Aur marriage ka toh maine yuhi bol diya but bahot se genuine reason hai.

Last thing. Why do you guys go on foreign trips ? because they have beautiful roads, house, nice weather, beautiful beaches, sexy girls and many beautiful and wonderful things. Right ?

Do you know it's all an illusion ? i mean of course its real but behind the scenes they all want our forex reserve, which is US dollar.

Many beautiful places available in India. We Indians will never travel to our own country.

Remember only one thing, govt doesn't have problem with anything, the only problem the govt has is with foreign currency usages.
Hunk Hunk
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abhishek012 wrote:
Yes, Our money (Indian rupees) is the property of the Indian govt. We can't do anything, if govt decides to take all the money from our bank account.

But wait, think logical. We live in India, not North Korea. So, legally i'm telling the truth but pratically this will never happen in a democracy or atleast in india.

You can travel internationally but with a certain limit. 

For example - RBI rules related to Forex transaction -

If you want to make a transaction, you must follow the rules established by the Reserve Bank of India: According to RBI regulations, remittances of up to USD 25,000 (INR 20,42,200) are allowed per calendar year. As per RBI, travelers are permitted to buy foreign currency notes for only up to $3,000 for each visit.

Every country has its own Forex transaction limit. For example, during pandemic i heard Nepal and Maldives decrease their forex transaction limit up to USD 1,000 per calendar year.

There is another rule from RBI - You must declare FOREX that you bring into India more than the allowed limits. 😬

Already told in my last comment, Foreign currency is not our currency, GOI want us to spend less on foreign currency.

The more foreign currency we use, the inflation also increase. We are not USA and US Dollar is not our currency, which is accepted worldwide.

Everybody wants cheap petrol in India but we Indians never save our forex reserve (if you dnt know we purchase fuel from our forex reverse, which is US dollar. That's why govt impose so much taxes on fuel. If govt makes fuel cheaper then our forex reserve will be over).

Which healthy democracy you are talking about ? USA ? every countries have same type of rules. The matter of USA is different, US can do anything.

We are not lucky right now. It will take 50 years for Internationalization of Indian rupees (i am talking about 100% acceptance of Indian rupees worldwide).

Oh by the way, the reason for bringing this new rule is that Indians have started using more foreign currency these days. Indians going to Turkey, UAE and getting married.

Of course, the problem is not with the marriage. the main problem is everyone spend in foreign currency. Aur marriage ka toh maine yuhi bol diya but bahot se genuine reason hai.

Last thing. Why do you guys go on foreign trips ? because they have beautiful roads, house, nice weather, beautiful beaches, sexy girls and many beautiful and wonderful things. Right ?

Do you know it's all an illusion ? i mean of course its real but behind the scenes they all want our forex reserve, which is US dollar.

Many beautiful places available in India. We Indians will never travel to our own country.

Remember only one thing, govt doesn't have problem with anything, the only problem the govt has is with foreign currency usages.
The government doesn't own our money. That's simply not true. I'll of course believe you if you show me proof stating otherwise

The Government can't and shouldn't tell us where to spend our money. If I want to have my wedding in Greece, with my money, I should be able to do that. It's my right of free will, my right to choose. And as I said in my post above, what we spend is a very small factor in what influences our currency's value. Why has under this Government the rupee fallen by almost 34% in the last 10 years? Is it now our responsibility to ensure the currency holds it's value?

Also when there are already RBI regulations in place, why the extra taxation?

And to the rest of your post - WTF!!? - that's all I have to say. Do you know why they have beautiful roads and good houses and beautiful beaches? It's because the government is utilising the tax money for public welfare. They haven't built beautiful roads to attract us Indians and get our forex reserve, it's so that their tax payers can have a comfortable life

Plus you do realize that we get a ton of tourists every year and they bring foreign reserves to our country, right? Infact the tourism industry contributes about 6-7% of our total GDP. What if the US government impose 20% tax on spends in INR? Don't you think that will affect our tourism industry?
Deal Cadet Deal Cadet
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A_J wrote:

Sorry, I don't understand this.

After this announcement, won't they just exchange INR to USD or whatever currency they want to and just it instead of using a CC? 

They can...but not everyone will carry cash...also there are RBI limits on how much foreign cash can be carried travelling abroad... Moreover even if one carries cash, it's practically unsafe to keep in hotels or keep carrying with you at all tourist places.

Also, many hotels accept credit card only, even for prepaid bookings.(You need to keep some deposit at the time of check-in)

CC is safe bet.

Generally, amount equivalent to 2k-2.5k INR per day in cash is sufficient enough.

E.g. For Singapore, 50 Singapore dollars per day, so for 6 days visit 300 SGD in cash is sufficient. Remaining can be spent using CC.
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A_J wrote:
The government doesn't own our money. That's simply not true. I'll of course believe you if you show me proof stating otherwise

The Government can't and shouldn't tell us where to spend our money. If I want to have my wedding in Greece, with my money, I should be able to do that. It's my right of free will, my right to choose. And as I said in my post above, what we spend is a very small factor in what influences our currency's value. Why has under this Government the rupee fallen by almost 34% in the last 10 years? Is it now our responsibility to ensure the currency holds it's value?

Also when there are already RBI regulations in place, why the extra taxation?

And to the rest of your post - WTF!!? - that's all I have to say. Do you know why they have beautiful roads and good houses and beautiful beaches? It's because the government is utilising the tax money for public welfare. They haven't built beautiful roads to attract us Indians and get our forex reserve, it's so that their tax payers can have a comfortable life

Plus you do realize that we get a ton of tourists every year and they bring foreign reserves to our country, right? Infact the tourism industry contributes about 6-7% of our total GDP. What if the US government impose 20% tax on spends in INR? Don't you think that will affect our tourism industry?
No, The Indian government own our Indian rupee.

You can't use your money on crypto, narcotic drugs, weapons and lots of other things.

You forget about demonetization ? GOI is the owner our Indian rupees that's why govt banned old 500 and 1000 rupees.

Ofcourse, If you want to have your wedding in Greece, with your own money, you can. File ITR and get your 20% tax refund.

Many European and Asian countries run on tourism only, That's where those countries get foreign reserves. that's why i told.

"What if the US government impose 20% tax on spends in INR?" US citizens never use INR currency. They use US dollar in India or anywhere on the earth. So, why US govt will impose 20% tax on INR spend ?
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abhishek012 wrote:
No, The Indian government own our Indian rupee.

You can't use your money on crypto, narcotic drugs, weapons and lots of other things.

You forget about demonetization ? GOI is the owner our Indian rupees that's why govt banned old 500 and 1000 rupees.

Ofcourse, If you want to have your wedding in Greece, with your own money, you can. File ITR and get your 20% tax refund.

Many European and Asian countries run on tourism only, That's where those countries get foreign reserves. that's why i told.

"What if the US government impose 20% tax on spends in INR?" US citizens never use INR currency. They use US dollar in India or anywhere on the earth. So, why US govt will impose 20% tax on INR spend ?

During demonetization, government took the old currency in form of notes (the paper and ink they own) and gave back new currency of equivalent value.
You can buy crypto, you just have to pay tax. You can use your money to buy weapons, drugs or whatever you want, it's just illegal. Again, just to reiterate, you own your money.

When you say that we spend all of our foreign reserves by visiting other countries, you just conviniently forget that we get a lot of foreign reserves when people travel to our country.

Tourism is a source of foreign currency. Yes US citizens use USD in exchange for things in India, which are priced in INR. That's how we get foreign reserves. Americans are not going around giving rickshaw drivers US Dollars. When a tourist from UK goes to India, they exchange pound for rupees, thus adding to our foreign reserves.

Just look at Sri Lanka if you want an example. The pandemic crippled it's tourism-dependent economy due to a slump in international travel, affecting a key source of foreign reserves.
What led to the economic crisis?
The government blamed the Covid pandemic, which badly affected Sri Lanka's tourist trade - one of its biggest foreign currency earners.
Source : https://www.bbc.com/news/world-61...38

I'm not going to try to explain economics further because that's just going to derail the thread even further.
And just to be clear, I'm no economics expert and feel free to correct me if I'm wrong, with proof stating the facts.
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I am not sure whether this is a good rule or not. on one hand, this will enable govt to monitor money going out of India on the other hand, even though, we will get our money back when we file income tax, but unt becomes a one year interest free loan to govt from people.

Regardless, this is bad for international students who need to pay fees. I know fees are taxed differently but to prove that on every little transaction is hard. I use my HDFC credit card 1-2 times/month in Australia for small transactions and to file ITR just to get that 3-4k back every year is a headache and it encourages me to close my credit card.

Outright 20% on all txn is too much. I understand that the INR is property of gov but the value that is in the INR i have is mine, i earned that value by hardwork and it is my right to be able to use that value howsoever i want. but just because my hard earned value is encapsulated in INR i have to give one year interest free loan to govt of india. This discourages small scale investments by NRIs into India as at the time of need the govt will withhold 20% of their total money.
I understand that there is good intention behind this law but the execution is wrong.

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A_J wrote:

During demonetization, government took the old currency in form of notes (the paper and ink they own) and gave back new currency of equivalent value.
You can buy crypto, you just have to pay tax. You can use your money to buy weapons, drugs or whatever you want, it's just illegal. Again, just to reiterate, you own your money.

When you say that we spend all of our foreign reserves by visiting other countries, you just conviniently forget that we get a lot of foreign reserves when people travel to our country.

Tourism is a source of foreign currency. Yes US citizens use USD in exchange for things in India, which are priced in INR. That's how we get foreign reserves. Americans are not going around giving rickshaw drivers US Dollars. When a tourist from UK goes to India, they exchange pound for rupees, thus adding to our foreign reserves.

Just look at Sri Lanka if you want an example. The pandemic crippled it's tourism-dependent economy due to a slump in international travel, affecting a key source of foreign reserves.
What led to the economic crisis?
The government blamed the Covid pandemic, which badly affected Sri Lanka's tourist trade - one of its biggest foreign currency earners.
Source : https://www.bbc.com/news/world-61...38

I'm not going to try to explain economics further because that's just going to derail the thread even further.
And just to be clear, I'm no economics expert and feel free to correct me if I'm wrong, with proof stating the facts.
No, its not. Legally, Indian Rupees is the property of Indian govt. Govt gives us freedom that where we can spend this money but it does not change that indian rupees is the property of Indian govt.

We live in a democracy and the whole world runs on trust. Tomorrow the govt will not come and take back all our money, it will make life difficult, the whole world will be destroyed. North Korea is the perfect example. The North Korean govt gives out coupons to its citizens, not money. So that the little freedom that is available in money, couldn't get that either.

The govt of every country wants their citizens to use only their local currency and don't exchange into any other foreign currency.

When Americans visit India, we get US dollar in our foreign reserve but when we Indians travel to any other countries not only US, like Japan, China, UAE, Ukraine, Europen countries or any other countries they get US dollar and we lose our foreign reserve. They don't get Indian rupees on their foreign reserve. That's the root of the whole problem.
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abhishek012 wrote:
No, its not. Legally, Indian Rupees is the property of Indian govt. Govt gives us freedom that where we can spend this money but it does not change that indian rupees is the property of Indian govt.

We live in a democracy and the whole world runs on trust. Tomorrow the govt will not come and take back all our money, it will make life difficult, the whole world will be destroyed. North Korea is the perfect example. The North Korean govt gives out coupons to its citizens, not money. So that the little freedom that is available in money, couldn't get that either.

The govt of every country wants their citizens to use only their local currency and don't exchange into any other foreign currency.

When Americans visit India, we get US dollar in our foreign reserve but when we Indians travel to any other countries not only US, like Japan, China, UAE, Ukraine, Europen countries or any other countries they get US dollar and we lose our foreign reserve. They don't get Indian rupees on their foreign reserve. That's the root of the whole problem.
Bro, once again, the currency, physical form of it belongs to the government, not the value. Please read what it says on the note.
"I promise to pay the bearer the sum of __ rupees" - signed Governor
The note is an agreement that tbf government has with the bearer saying if you own this, I'll pay you 500/1000. It doesn't say, if you own this, you owe me, the Governor, 1000 rupees. It's just like if I owe you 500 and I give you a legal document saying I owe you 500, signed A_J.

The money in your pocket is a form of government debt. That debt's owed to you, as the bearer. So you own it. The government can't "own" its own debt.
The government "repays" its debt to you by accepting the currency when you pay your taxes. That's why, if the government says you have a 1000 rupees tax debt, it can be paid with a 1000 rupees note. The tax debt is your debt to the government, and the bill is the government's debt to you. The two cancel out when they meet.

I'm not going to try to explain this any further, because I don't think I can make it any simpler. For proof just look at the INR Note in your purse and read what it says. And if you are still not satisfied, Please do your own research.

How do we lose our foriegn reserves when we travel? When we go to Singapore, we exchange Indian rupees for Singapore dollar. We supply rupees and demand Singapore dollars. Too much supply of rupees and too little demand for rupees means it decreases our currency's value, it doesn't affect our foreign reserves. When we go to any foreign country, we increase the value of their currency and decrease the value of our currency by a very small percentage because of demand and supply. USD has nothing to do with it. USD is the preferred way of storing foriegn reserve and us not visiting Japan ain't going to change that.
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