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:
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(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 the 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 the 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 come 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 crores declared.
- Under IDS’16 a total of 65,250 crores declared.
- 52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts in India.
- 21000 people declared 4,900 crores 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 the cash deposit of over Rs 25 lakh.
- 5000 Tax notices who deposited more than 1 Crore.
- 18 Lac Accounts scrutinised & Notices been sent 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 crores 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 …
The 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’ has been ceased in last 4 Years.
And of course ‘Currency’ came back to Banks doesn’t mean it is not Black Money. The ceased amount is also been deposited.
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