Big demonetisation impact! Income tax bonanza as lakhs of high net worth non-filers pay this whopping amount – The Financial Express

After demonetisation, a total of 3.04 lakh high-net-worth non-filers came under the scrutiny of the Income Tax Department for depositing more than Rs 10 lakh in old notes in their bank accounts. Of the total, 2.09 lakh non-filers paid self-assessment tax of Rs 6,416 crore, the government told the Parliament. This puts an average tax paid by these non-filers at Rs 3 lakh per person.

The government said that over 2 lakh non-filers came clean about their deposits due to the ‘sustained non-intrusive’ campaign started after the announcement of demonetisation. Following demonetisation, the government allowed people to file Income Tax Returns of the undeclared deposits.

The government launched Pradhan Mantri Garib Kalyan Yojana (PMGKY), under which people can make a declaration of their undisclosed income, pay the due taxes with penalties and bring such undisclosed income into the formal economy, the government said.

Besides income declaration, searches conducted by the ITD of 900 groups also lead to the seizure of Rs 900 crore, which included cash worth Rs 636 crore. Several surveys also resulted to the detection of undisclosed income of Rs 6745 crore, Shiv Pratap Shukla, Minister of States for Finance, told Rajya Sabha.

The Enforcement Directorate also registered 37 cases under the Prevention of Money Laundering Act (PMLA) provisions in connection with irregularities following demonetisation. It led to attachment of properties worth Rs 144.71 crore and gold weighing 7.538 kg.

On November 8, 2016, Prime Minister Narendra Modi announced demonetisation in a televised address to the nation, banning then currency notes of Rs 500 and Rs 1,000. Later, these notes were replaced with new currency notes of Rs 500 and Rs 2,000. As a result of demonetisation, digital payments also shot up, which along with the implementation of the Goods and Services Tax, experts say, will lead to the formalisation of the economy.

via Big demonetisation impact! Income tax bonanza as lakhs of high net worth non-filers pay this whopping amount – The Financial Express

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