Demonetization Effect: IT notices for 2 Lakh people

Prime Minister Modi announced plans to demonetize ₹500 and ₹1000 notes on November 8, 2016, he said removing black money from the economy would combat both terrorism and corruption.

Data released by the Reserve Bank of India (RBI) indicates that demonetization has failed to flush out black money.  Nearly 99 percent of the scrapped notes were deposited into the country’s banks and have re-entered the country’s monetary system.

The Income Tax Department has issued notices to about 2 lakh people. Rs.500 and Rs.1,000 in cash worth Rs 20 lakhs have been deposited with these notices to those not disclosing information.

 

After demonetization, deposits of Rs 500 and Rs 1,000 were examined. Of these, over 18 lakh accounts suspected, who deposited over Rs 5 lakhs. Of these, 12 lakh people have been inspected by the Income Tax Department. It has been found that there are suspicious deposits worth Rs.2.9 lakh crore.

A large number of deposits is divided into certain categories and actions are taken on a step by step. In the first phase, the action was taken against 70 lakhs of depositors worth Rs 50 lakhs and more.

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