Ever since Prime Minister Narendra Modi announced scrapping of old Rs 500 and Rs 1,000 notes on November 8, 2016 – and the subsequent window to deposit black money in banks with a fine – unaccounted cash worth Rs. 70,000 crore has come back to the system.
This in turn has translated to around Rs 6,000 crore as tax revenue for the government.
Justice Arijit Pasayat, the vice chairman of the special investigation team (SIT) on black money said that the amount has been taxed from people who made unexplained cash deposits during the period.
The government had announced an amnesty scheme for the depositors by compounding by payment of 60% of the deposits as tax. “Tax authorities have so far collected around Rs 6,000 crore,” said justice Pasayat adding that the figures could go up further in the coming days.
In the first phase of the post-demonetisation drive against black money, focus was on cash deposits of Rs 50 lakh or more.
18 lakh individuals who deposited large amounts after demonetisation were asked to divulge the source of income under Operation Clean Money/Swachh Dhan Abhiyan initiative.
Emails and SMSes have been sent to all such depositors. Many opted to avail the amnesty schemes for compounding by paying up the stipulated steep tax.
“As many as 1,092 people, who had deposited over Rs 50 lakh, have not yet responded to notices,” he said.
Admitting that the process is tedious and time consuming, justice Pasayat said the onus of explaining the source of the income.
He also said that the entire amount of unexplained money deposited by government officials would be confiscated under Prevention of Corruption Act if they fail to show the source.
News Source: India Times