Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections: Govt Clarification

Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections: Govt Clarification

The Government of India launched a concerted drive against black money with Demonetisation being an important step in that direction. Among the main objectives of Demonetisation was the flushing out of black money and also conversion of the non-formal economy into a formal economy to expand the tax base.

The impact of Demonetisation on black money, widening of tax base and Direct Tax Collections is summed up hereunder:

mpact-of-demonetisation-on-black-money-paramnews-govt-clarify

A. Impact on black money:
Quantum jump in Enforcement actions based on Demonetisation data: 

Searches : 
  • 158% increase in number of searches (from 447 to 1152 groups)
  • 106% increase in seizures (from Rs. 712 crore to Rs.1469 crore)
  • 38% increase in admission of undisclosed income (from Rs.11,226 crore to Rs. 1,54,96 crore)
Surveys
  • 183% increase in surveys (from 4422 to 12520)
  • 44% increase in undisclosed income detected (from Rs. 9654 crore to Rs. 13920 crore)
Operation Clean Money:
The Income Tax Department launched ‘Operation Clean Money’(OCM) on 31st January, 2017 to analyse the data of the persons who deposited large sums of cash and whose returns of income were not in sync with such deposits.
Phase 1:

  • In the first phase of OCM, 18 lakh suspect cases were identified through use of data analytics where cash transactions did not appear to be in line with the tax profile of depositors.
  • Online verification in these cases was enabled and done in a record time of 4 weeks.
  • The success of the first phase was also attributable to the massive taxpayers’ awareness and media campaigns on Operation Clean Money launched by the Department.
  • The scale of the Operation may be gauged from the fact that response of 9.72 lakh persons in respect of 13.33 lakh accounts involving cash deposits of around Rs.2.89 lakh crore, as per pre-defined parameters on sources of the cash deposits was captured by the Income Tax Department within a short span of 3-4 weeks. Online queries were raised in more than 35000 cases and online verification was completed in more than 7800 cases.
Phase 2:

  • The Operation Clean money has since moved into the next phase that includes enforcement actions in high risk cases, taxpayer engagement through a dedicated website in medium risk cases and close monitoring in low risk cases.
  • The high, medium and low risk cases have been identified through use of advanced data analytics, including integration of data sources, relationship clustering and fund tracking.
  • The exercise has also unearthed large number of persons and clusters having suspect transactions. These include about 14,000 properties of more than Rs.1 crore each where persons have not even filed Income Tax Returns. The investigations are in progress.
B. Impact on Widening of Tax-base:
The number of e-returns of Individual taxpayers filed till 5th August, 2017 (due date of filing) increased to 2.79 crore from 2.22 crore returns filed during the corresponding period of last year, registering an increase of about 57 lakh returns (25.3%). This shows marked improvement in the level of voluntary compliance as a result of action taken by the Income Tax Department on the basis of data of cash deposits in the wake of demonetization.
The total number of all returns (electronic + paper) filed during the entire Financial Year 2016-17 was 5.43 crore which is 17.3% more than the returns filed during FY 2015-16.

For FY 2016-17, 1.26 crore new taxpayers (return filers + non-filers making tax payments) were added to the tax base (till 30.06.2017).

C. Impact on Direct Tax Collections:
The effect of Demonetization is also clearly visible in the growth in Direct Tax Collections. Collection of Advance Tax under Personal Income Tax (i.e. other than Corporate Tax) as on 05.08.2017 showed a growth of about 41.79% over the corresponding period in F.Y. 2016-2017. Collection of Self-Assessment Tax under Personal Income Tax showed a growth of 34.25% over the corresponding period in F.Y. 2016-2017.

COMMENTS

CGHS Latest Updates$type=list$m=0$cate=0$sn=0$rm=0$c=7

Name

'Aaykar Setu' mobile app,1,3rd cpc,1,4th cpc,1,5th cpc,13,6th cpc,17,7th CPC,506,7th CPC Arrears,5,7th CPC Arrers,8,7th CPC Bunching of Stages,5,7th CPC Hindi News,19,7th CPC News,77,7th Pay Commission,278,Aadhaar,27,aai employee,1,accommodation,2,acpin,1,ad-hoc bonus,5,ad-hoc staff,1,additional hra,4,admission,2,admit card,1,advance,3,advance salary,2,age limit,1,AGEY,1,aicpin,19,aigdsu news,6,AIIMS,3,ailtc railways,8,aipr,3,Air Force,13,Air Force pay Rules 2017,2,Air India,8,air india ltc 80 fare,11,Air Travel,18,Aircel,1,airf,23,Airlines,1,Airtel,4,alcohol policy,1,all india,5,Allowances,145,Amazon Ofers,1,Andhra Pradesh,1,Andhra Pradesh govt employee,1,anomaly committee,2,aoc,1,apar,10,app download,1,Apple iPhone,3,Army Pay Rules 2017,3,Assam,4,Assistant Jobs,1,Bank,40,bank da,6,bank holidays,1,Bank Policies,19,banknotes,1,Benevolent Fund,1,Bihar,9,Bihar 7th CPC,3,bihar govt employee,2,Bollywood,4,bonous,2,bonus,8,bpms letter,1,breakdown allowance,3,Breaking News,139,BRICS,1,Bsnl,17,BSNLMRS Hospitals,1,budget,5,Business,84,ca exam pattern,1,Cabinet News,43,cadre restructuring,5,cadre review,22,CAG Report,3,canteen allowance,1,capf,2,CAPO News,4,Career,56,career progression,1,casual labour,6,casual leave,4,cat Judgement,5,cat order,5,CBDT,22,CBEC,5,cbic,3,CBSE,10,ccs master circular,2,ccs pension rules,6,ccs rules,30,ccsrp rule,1,cda rules,3,cgda,41,cgegis table,8,CGHS,136,cghs agartala,1,cghs ahmedabad,1,cghs allahabad,1,cghs bengaluru,3,cghs bhopal,3,cghs bhubaneswar,1,cghs chandigarh,1,Cghs Chennai,2,cghs dbanbad,2,cghs dehradun,1,cghs delhi,6,cghs dibrugarh,1,cghs guwahati,1,cghs hyderabad,1,cghs indore,1,cghs jabalpur,1,cghs jaipur,1,cghs Jalpaiguri,1,cghs kanpur,2,cghs karnataka,1,cghs kerala,1,cghs kolkata,1,cghs lucknow,1,cghs meerut,2,cghs mumbai,2,cghs nagpur,2,cghs patna,2,cghs pune,1,cghs ranchi,5,cghs shillong,1,cghs Siliguri,1,cghs trivandrum,2,cghs uttrakhand,1,cghs vadodara,1,cghs Varanasi,1,chandigarh,1,chhattisgarh,1,child care leave,5,children education allowance,8,China,1,cisf,1,Civil Accounts Organisation,1,Classification of Posts,1,come & play scheme,1,Commutation of Pension,2,compassionate ground appointment,13,Compensation Policy,3,Compensatory Allowance,1,Compensatory Leave,1,composite allowance,1,condiment allowance,3,Condiment expenditure,3,confedration,1,consatant attendance allowance,1,contract labour,14,Conveyance Allowance,3,cpao order,30,cpf,2,cpgrams,4,cpiiw,13,cpmf,1,cpse,77,cpse employees,16,cpse guidelines,29,cpse pay revision,2,cpse pension,5,CPSEs Pay,20,Cricket,4,cris,3,CRPF,1,CS(MA) Rules,5,csd,2,csd price list,1,ctse,1,ctse hospitals lists,1,ctse hospitals mumbai,1,Current Affairs,308,cvc circular,3,d el ed,1,daily officiating allowance,4,dearness allowances,62,dearness relief,26,Defence,349,Defence Civilian Employees,47,Delhi,2,delhi govt employee,2,delhi high court,3,dental doctor,2,dept of post order,117,deputation,6,deputation allowance,5,desw,2,desw order,5,disability pension,10,dlc,2,Doctor Jobs,16,doe order,50,doea order,1,doppw order,20,DoPT Order,214,dot order,12,Download MedWatch App,1,Download MyMSME App,1,Download MyMSME App Celebrating Yoga,1,Download NEW ITR FORM,2,Download Swachh Bharat App,1,dpe om,38,dress allowance,11,dress code,1,dst om,1,EC,1,echs,46,ecil,1,EDUACTION,78,Education,7,educational qualification,6,Egineer Jobs,1,Election,4,Election Commission,5,Employment,6,Entertainment,2,entry pay,2,EPFO,35,ESIC,5,eview committee for nps,1,EVM,1,ews reservation,2,ex-gratia,3,Ex-Servicemen,11,exam,4,exempt from tax,1,expected da,22,extra work allowance,3,Extraordinary Pension,1,Facebook,8,fact jobs,1,Family Pension,114,FAQ,5,Featured,79,festival advance,2,festivals,1,FIFA,1,File ITR,66,Fin Min Orders,101,Finance,10,fitment table,3,Fixed Medical Allowance,12,Flipkart,2,Football,3,forms,7,FREQUENTLY ASKED QUESTIONS ON GST,1,Games,12,Ganes,2,gazette notification,29,gazetted holidays,3,gdce,3,gdce instructions,5,gds,27,gds arrears,9,gds da,12,gds employees news,42,gds pay,15,gds report,19,gfr,2,GOI News,570,Goods and Services Tax,50,Goods and Services Tex,1,Google,10,government of karnataka,1,Govt Jobs,13,govt of assam,2,govt of assam pensioner,1,govt of assam staff,1,govt of chhattisgarh,1,Govt Project,326,Govt Staff News,1233,Govt Yojna,276,gpf interest rate,4,GPF Rules,16,GPRA,7,Grade pay of SO,1,gratuity,10,group A,1,group B,2,group C,3,Group D,2,Gst,62,GST Rates Finder app,1,hafa allowance,1,Hardship Allowance,1,Haryana Govt Employees,5,Haryana Govt order,5,Haryana Govt Pensioners,2,hba rules,9,Health,27,High Court Judgement,6,high court order,5,hill area allowance,1,holiday,6,holiday list,19,Hollywood,2,homes.,1,honorarium,2,hostel subsidy,1,hpca,2,hr allowances,1,hra,11,HRA Allowances,39,iba,9,iba dr,3,ibps,2,icsil,1,ida cpse,18,income tax,74,independence day,1,India,3,India Post,34,Indian Airforce,60,Indian Army,82,Indian Navy,74,indian railway,14,IOCL Jobs,1,IRCTC,9,irms,3,irtsa,2,Island Special Duty Allowance,2,ISRO,1,it circular,1,iti ltd,1,ITR,69,j&k govt employees,4,j&k govt pensioners,1,Japan,1,Jharkhand,3,Jio News,8,jkssb,1,jnv,7,Jobs,54,Jobs News,146,karnataka,1,KC Committee report,4,kerala,4,Kerala Govt Employees,4,Kerala Govt Pensioners,2,Kolkata,1,KVS,61,kvs pension,6,labour Bureau,14,larsgess scheme,3,Latest,993,ldce,18,leave rules,8,lic pay,2,life certificate,2,life time arrear,1,List of Posts,1,Lok Sabha,172,LTC,54,ltc 80 air fare,14,Ltd Company Jobs,2,mAadhaar App,2,macp,56,Make in India,2,Market,1,Maruti Suzuki Dzire,1,maternity benefit act,2,maternity leave,8,Medical advance,1,medical card,12,Medical claims,7,Meghalaya Govt Employees,1,merger of posts,2,MERIT app,1,mes,2,MGNREGA,2,mha,5,mhfw order,18,mhrd order,8,Microsoft,1,Microsoft News,1,minimum pension,1,minimum wages,19,mod order,29,mohfw order,20,monetary allowance,3,moped advance,1,MP,1,msp,2,mtnl,3,mutual transfer,1,NABARD,1,nac meeting,1,Namami Gange,5,National,705,Navy pay Regulations 2017,2,ncjcm,76,nda,2,ndmc,1,New Delhi,3,new TRCA matrix,6,nfir,77,NGT,1,night duty allowance,2,Non-functional Upgradation,2,northern railway,1,Notification,1,notional increment on retirement,2,npci,1,nps,63,nps updates,32,ntpc,1,nursing allowance,2,nursing perssonsel,3,NVS,12,odisha,3,odisha govt employees,1,odisha govt pensioner,1,operation theater allowance,1,ops,1,ordnance factory,3,orop,23,overtime allowance,11,PAN,7,paramilitary force,1,pass rules,11,Passports,1,patna high court judgement,1,pay fixation,39,pay revision,6,pay rules,7,pay scale,1,pay slip,1,pbor,3,pcda circular,63,pco allowance,2,pda lists,2,pdca circular,8,Pension,265,Pension Adalat,6,Pension Adalat Application Form,4,Pension faq,21,Pension revision,22,pensionary benefits,2,Pensioner,214,Pensioner associations,3,Pensioner Portal,13,pfrda,10,pgportal,3,pl bonous,14,PM Modi,27,PMAY,5,pmjay,1,PMUY,1,PMVVY,1,Policies,442,Politics,37,post graduate allowance,1,post office,4,post-2016 pensioner,2,prcp in railway,5,pre-2006 pensioner,2,pre-2016 pensioner,5,President,2,Project Allowance,2,Promotions,34,Promotions policy,35,provisional pension,2,puducherry,1,Railway,557,Railway Recruitment,32,railway servants pass rules,4,rajasthan govt employees,5,rajasthan govt pensioners,3,rajbhasha,4,Rajya Sabha,42,Rashtriya Swasthya Bima Yojana,1,ration money allowance,2,RBI,12,re-enengagement,2,Real Madrid,1,Recruitment,36,recruitment rules,41,relhs,3,remote area allowance,1,remuneration,2,RERA Act,1,reservation,1,reservation criteria,26,reservation in teacher cadre,2,rest rules,1,restricted holidays,3,Result,6,retention of railway accommodation,1,retired saffs,5,retirement age,9,retirement benefits,4,Retirement Road Map,2,review committee for nps,6,revised pay,38,revised pay matrix table,8,revised pension,4,revised vda,15,rilways,1,risk and hardship allowance,11,Rotational transfer,1,rrb ahmedabad,1,rrb ajmer,1,rrb allahabad,1,rrb bangalore,1,rrb bhopal,1,rrb bhubaneshwar,1,rrb bilaspur,1,rrb chandigarh,1,rrb chennai,1,rrb gorakhpur,1,rrb guwahati,1,rrb jammu,1,rrb kolkata,1,rrb malda,1,rrb mumbai,1,rrb muzaffarpur,1,rrb patna,1,rrb ranchi,1,rrb secunderabad,1,rrb siliguri,1,rrb thiruvananthapuram,1,RS (RP) Rules,2,rsrp rules,4,running allowance,3,running staff,7,RUSA,1,s,1,SAARTHI App,1,sas exam,2,SBI,12,SBI Rules,7,scholarship,2,Science,17,scova meeting,6,settlement form,1,SEVA App,1,Seventh Central Pay Commission,149,SKILL INDIA Mission,1,small saving scheme,7,sparrow,1,special allowance,6,special family pension,4,Special LC Gate allowance,1,Sports,17,Sports activities,1,ssc jobs,2,ssc jos,1,status of PPOs,6,storekeeping staff,1,strike,9,study allowance,1,study leave,1,Sukanya Samriddhi Account,2,Supreme Court,21,Supreme Court Judgement,20,Survey,1,syllabus,8,syndicate bank,1,Tarang Sanchar,1,Tatkal Reservation Scheme,1,Tax,22,tds deduction,44,teacher jobs,9,Tech,34,technical allowances,1,Telangana,3,telangana govt employees,2,telangana govt pensioner,1,Telcome,2,Telcome News,8,timely disposal of applications,2,TN Govt Employees,5,TN Govt Pensioners,3,tnusrb recruitment,1,Trade,1,trade unions,1,TRAI,1,training allowance,3,Transfer policy,36,transport allowance,6,Travelling Allowance,27,Trending Now,131,trip allowance,1,tripura govt employees,2,tripura govt pensioner,1,Trump,1,uan,1,Uber,1,ugc,1,uidai,2,UJALA Scheme,1,uniform allowance,2,UP CM Yogi Adityanath,2,UP Govt Employees,1,upgradation of pay,5,upgradation of post,1,Upper Caste reservation,7,uppsc,1,UPSC Jobs,3,USA,2,Uttar Pradesh,3,vacant posts,1,vrs,3,WB Govt Employees,1,Weather,2,West Bengal,5,west bengal govt employees,3,west bengal govt pensioners,1,Whatsapp,2,Windows 10 OS,1,World,62,World Press Freedom Day,1,You Tube,2,
ltr
item
Param News: Central Government Employee News|Latest DOPT OM: Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections: Govt Clarification
Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections: Govt Clarification
Among the main objectives of Demonetisation was the flushing out of black money and also conversion of the non-formal economy into a formal economy to expand the tax base.
https://3.bp.blogspot.com/-fykqA1LYtn8/WagViRSuS-I/AAAAAAAADZw/uwZG8G4BR_YNJqY314x_upxFXbY0hakRQCLcBGAs/s1600/mpact-of-demonetisation-on-black-money-paramnews-govt-clarify.png
https://3.bp.blogspot.com/-fykqA1LYtn8/WagViRSuS-I/AAAAAAAADZw/uwZG8G4BR_YNJqY314x_upxFXbY0hakRQCLcBGAs/s72-c/mpact-of-demonetisation-on-black-money-paramnews-govt-clarify.png
Param News: Central Government Employee News|Latest DOPT OM
http://www.paramnews.com/2017/08/impact-of-demonetisation-on-black-money.html
http://www.paramnews.com/
http://www.paramnews.com/
http://www.paramnews.com/2017/08/impact-of-demonetisation-on-black-money.html
true
2671314941044517342
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy