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.