demonetisation: A year after demonetisation, hunt for black money getting more intense
NEW DELHI: The revenue tax division’s information evaluation group in Ghaziabad has had a busy few months, scanning by a couple of million information factors to construct a case towards those that are suspected to have misused the money deposit facility throughout demonetisation.
Beginning this week — which coincides with demonetisation anniversary — it should begin dispatching notices beneath the I-T Act to just about 70,000 entities that deposited over Rs 50 lakh outdated notes into financial institution accounts however haven’t cared to reply to information uploaded of their accounts and even file returns, one thing that 1.three lakh others with related deposits have accomplished.
“We’ve been ready for folks to file their returns earlier than sending notices,” mentioned an officer. Whereas people had been to file returns by August 5, the prolonged deadline for these whose accounts needed to be audited ended on Sunday. Of the 18 lakh instances with suspect deposits, round 12 lakh have responded to the division’s queries. The lens is on the remaining 5-6 lakh, lots of whom are anticipated to have filed their returns.
“We need to set an instance by going after the large fish. We are going to go after the smaller depositors later and can given them another name to reply. If they do not reply, then formal notices will begin going from January,” defined a high-ranking officer monitoring the whole train. The plan is to finish the evaluation of those instances in two years. Motion towards the “large fish” will begin this week.
Additionally beneath scrutiny are round 22,000 tax returns filed by those that both didn’t file returns earlier or those that revised their returns after demonetisation was introduced on November eight, 2016. “These are instances the place we observed erratic behaviour. In lots of instances the numbers aren’t matching,” defined the senior officer.
With over 99% of the demonetised Rs 500 and Rs 1,000 notes again within the banking system, the federal government is being questioned whether or not the whole train flushed out any black cash in any respect.
Critics are questioning Prime Minister Narendra Modi’s transfer arguing that it solely resulted in additional slowing down the financial system and large job losses within the unorganised sectors.
The federal government has countered the criticism saying that the transfer will yield outcomes over time. The main focus is now on the income division to detect and draw out black cash. It proposes to scan the returns filed throughout the present monetary yr to match gross sales tendencies of corporations and their taxable revenue. There may be higher reliance on assertion of monetary transactions which offers with property and share transactions other than money deposits.
There are income officers who warn of the lengthy haul “You may have information however then you should set up the hyperlink, construct a case after which battle it in varied ranges. It is not simple. Will the division retain its focus for 10 years?” mentioned an officer within the Central Board of Direct Taxes.
Senior officers within the board, nevertheless, consider that the outcomes are already seen with compliance on the rise. They level to an increase within the variety of everlasting account numbers which were issued in latest months. As well as, they mentioned, extra returns are being filed this yr.