Demonetisation: Rs 6,000 crore tax collected on unexplained cash deposits post note ban

Many agreed to avail the amnesty scheme that earlier allowed compounding by payment of 60% of the deposits as tax, now hiked to 75%.

Author: Sandhya Dangwal

Updated: March 18, 2017, 10:52 AM IST

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https://www.india.com/news/india/demonetisation-rs-6000-crore-tax-collected-on-unexplained-cash-deposits-post-note-ban-1937002/ Copy

New Delhi, March 18: Justice Arijit Pasayat, the Vice-chairman of the special investigation team (SIT) on black money on Friday said that the amount of money that the Centre has collected as tax so far may scale up with time. A total of about Rs 6,000 crore of unexplained cash deposits have been collected post demonetisation. Post note ban, the tax authorities sought an explanation from individuals, who deposited cash of Rs 500 and Rs 1,000 notes in either their account of any other account. As per report by TOI, many people agreed to avail the amnesty scheme that earlier allowed compounding by payment of 60% of the deposits as tax, now hiked to 75%.

Pasayat, who with SIT chairman Justice M B Shah supervises the drive against black money by the CBI, Enforcement Directorate, Central Board of Direct Taxes and other agencies said that tax authorities have so far collected around Rs 6,000 crore. He stated that first phase of the post-demonetisation drive against black money the aim of the government was focused on cash deposits of Rs 50 lakh or more.

All the businessmen have been asked to submit balance sheets of last three years along with income tax declarations for every year. Pasayat said that the onus is on those who have deposited huge cash to explain the source. The authorities have been asked to be very strict with government officials who have deposited large amounts as the entire unexplained money deposited by them would be confiscated given the applicability of Prevention of Corruption Act. (ALSO READ: Taxpayers disclose black money with no official estimation of percentage in India)

Outlining the massive task the tax authorities’ face in examining each and every case of unexplained cash deposited, he said that as many as 1,092 people, who had deposited over Rs 50 lakh, have not yet responded to notices. “The authorities, while examining the huge bank deposits, will finally have to come down to the macro level at some point in time to examine sudden huge deposits of cash in even Jan Dhan accounts. The exercise will be tedious and time-consuming. But the tax authorities are determined to undertake this workload,” he was quoted by TOI. Earlier this month, Pasayat held a meeting with several government agencies dealing with economic and financial affairs. He informed that the SIT will submit its sixth interim report to the Supreme Court in the first week of April.