Has Demonetisation Really Failed ?

Demonetisation

 1,157 total views

The Government of India decided to cancel the Legal Tender Status of Rs.1000 and Rs.500 denomination currency notes on 8th November 2016 with several objectives: (i) flushing out Black Money, (ii) eliminate Fake Indian Currency Notes (FICN), (iii) to strike at the root of financing of terrorism and left wing extremism, (iv) to convert non-formal economy into a Formal Economy to expand Tax Base and employment and (v) to give a big boost to Digitalization of payments to make India a less cash economy.
Effect & Benefits of ‘Demonetisation’.
  •  56 lac New Taxpayers Added post Demonetisation.
  •  Tax Base increased by 1.26 crore taxpayers.
  •  The number of Returns filed registered an increase of 24.7% over previous year of 9.9%
  •  Net currency circulation reduced by Rs. ~3 trillion i.e 21%
  •  Interest rates reduced by 100 bps.
  •  Card (Debit & Credit) transaction increased by 65%
  •  Deposits in Banking system increased by 3 lac crore.
  •  16,000 crore didn’t came back to Bank.
  •  4.73 lac suspicious transaction detected.
  •  All Transaction above 3 lac under Scrutiny.
  •  Jewellery demand plunged by 80%.
  •   Digital payments have increased by 56%.
  •  Assets under management (AUM) of Mutual funds (MFs) rose by 54%.
  •  More than 1 crore workers added to EPF & ESIC.
  •  Under IDS’15 a total of 3,770 crore declared.
  •  Under IDS’16 a total of 65,250 crore declared.
  •  52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts in India.
  •  21000 people declared 4,900 crore under PMGKY.
  •  34 Big Chartered Accountants under Investigation.
  •  460 banks officials punished for alleged irregularities: CVC
  •  5,800 companies with ‘withdrawal syndrome’ under government scanner.
  •  Notices to 1.16 lakh for cash deposit of over Rs 25 lakh.
  •  5000 Tax notices who deposited more than 1 Crore.
  •  18 Lac Accounts scrutinised & Notices been send under ‘OCM’.
  •  5.56 lakh more ppl identified whose deposits do not match their income profile.
  •  35,000 shell companies were struck off.
  •  About 200 high risk clusters of persons were identified for appropriate action.
  •  2.1 lac shell companies De-registered
  •  GoI to de-register 1.2 lac more shell companies.
  •  3.09 lac Board of Directors disqualified.
  •  Undisclosed income of 42,448 crore admitted u/s 132(4).
  •  33,028 crore detected as Undisclosed Income.
  •  Cash deposits of 2.89 lakh crore under I-T investigation.
  •  The impressive revenue collection under GST is also partially attributable to demonetization drive.
Who’s saying ‘Demonetisation’ was Failed … Bring Him here …
Fact remains 1,65,396 crore worth of ‘Black Money’ had been captured / admitted / came back post IDS & due to Demonetisation. Recovery by ED & Recoveries under ‘Benami’ & ‘Imposition’ Tax are additional. Total of 2,12,360 crore worth of ‘Black Money’ have been ceased in last 4 Years.
And of-course ‘Currency’ came back to Banks doen’t mean it is not Black Money. Ceased amount is also been deposited.

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving