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Deposits worth Rs1.75 trillion post demonetisation under lens: Narendra Modi

LiveMint logoLiveMint 15-08-2017 Gireesh Chandra Prasad

New Delhi: Prime Minister Narendra Modi said in his Independence Day speech that more than Rs1.75 trillion of deposits that banks received after last November’s demonetisation exercise is under suspicion for tax evasion.

Modi said in his address to the nation from the Red Fort on Tuesday that the ban of high value currencies from November last year had led to bank deposits of about Rs3 trillion in cash which until then had remained out of the banking system.

“Those who were hiding black money, had to come to the mainstream,” said the Prime Minister, adding that those who made suspicious bank deposits after demonetisation are being asked to explain details of funds. Modi also gave figures showing that the tax base was widening after demonetisation.

“Generation of new black money has halted in a big way,” Modi said, adding that between April and 5 August, 55 lakh new personal income tax returns have been filed relating to 2016-17 financial year, compared to 22 lakh returns filed in the same time a year ago.

Modi said that the tax department has identified 18 lakh assesses with income way more than what has been reported. About one lakh assessees have never paid income tax before.

Also read: Independence Day speech 2017: Narendra Modi invokes ‘new India’ by 2022

Modi also said that data mining after demonetisation has helped identify more than 3 lakh shell companies involved in financial fraud, including money laundering. Out of these, the government has cancelled the registration of about 1.75 lakh companies.

Modi said his administration has started a movement against black money and that companies looting the nation have to explain their actions. Hundreds of shell companies were working from the same address.

Modi said that introduction of goods and services tax (GST) from 1 July was another step meant to bring transparency and efficiency in the system. The transportation sector has saved 30% time in long-haul freight movement after GST rollout, Modi said.

Also read: NDA govt steering India on new path, without slowing down economy, says Modi

The Central Board of Direct Taxes (CBDT), the apex direct tax policy making body, said on 7 August that companies, partnerships and individuals filed more than 28.2 million income tax returns (ITR) for the 2016-17 financial year before the extended deadline of 5 August, a 24.7% increase over the previous year.

The CBDT also stated on 9 August that the government’s net receipts from corporate and personal income tax rose 19.1% in the April-July period to Rs1.9 trillion, faster than the growth rate estimated in February for the entire financial year.

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