Rush to change Rs 2,000 notes spills on to many routes

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These are people with undisclosed 2,000 bills - the cash they have to wash and hide in the next four months...

Some, said another person, would try to circulate the cash through temples and religious institutions - which are allowed to receive anonymous donations - to get back currency notes of smaller denominations...

Siddharth Banwat, a chartered accountant with a leading firm in Mumbai, said, "People working on various schemes to utilise large amounts of cash with 2,000 notes must think of the consequences..

"For instance, there are several transactions in which quoting of PAN is mandatory, which includes payment in cash of an amount exceeding 50,000 to a hotel or restaurant against bill at any one time, in connection with travel abroad or payment for purchase of any foreign currency at any one time..

Some tried finding out whether the cash can be spent to buy dollars and euros in the foreign exchange black market - a transaction that would use up the notes as well spare them from the tax on international credit card spends..

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