Success or Failure

DEMONETISATION

Mr. Ravi
Indian
File Updated as on 4/09/2017

Demonetisation and Black Money

According to Reserve Bank of Indias (RBI) annual report released Wednesday,
98.96% of Rs 500 and Rs 1000 notes (by value) that were invalidated due to the
demonetization exercise had been returned by the end of June.

So RBI received was Rs 15.28 trillion against 15.44 trillion

Rs 16,000 crore have not returned

Refer page 195 of the Annual Report of RBI 2016-17

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170379

The trail of deposits of SBNs into bank accounts may provide valuable
information to the revenue authorities in tracing unaccounted money.
During 2016-17, the number of suspicious transaction reports filed by
banks and other financial intermediaries with the Financial Intelligence
Unit, Government of India, witnessed a quantum jump (Table VIII.9)

Refer page 127 and 130 of the Annual report of RBI 2016 - @017
File Updated as on 4/09/2017

After the demonetization, the preliminary analysis of data received in respect of deposits made by people in
old currency presents a revealing picture. During the period 8th November to 30th December 2016, deposits
between Rs 2 lakh and Rs80 lakh were made in about 1.09 crore accounts with an average deposit size of Rs
5.03 lakh. Deposits of more than 80 lakh were made in 1.48 lakh accounts with average deposit size of Rs3.31
crore

This data mining will help us immensely in expanding the tax net as well as increasing the revenues, which
was one of the objectives of demonetization

(So this means that about 67% pf Rs 15.44 lakh crore demonetized amount came through mere 1.10 crore
accounts. That will go through the scrutiny of IT)

Union Budget 2017-18 para 142

Cash deposits of Rs 2.89 lakh cr post note ban by 9.72 lakh persons in 13.33 lakh accounts under radar, says I-
T dept: PTI

https://twitter.com/timesofindia/status/903212548287119366

No. Of e-returns of individuals filed till 5th August, 2017 increased from 2.22 crore to 2.79 crore. Thats an
increase of 57 lakh (25.3%)

Total No. Of all returns during Financial year 2016-17 increased by 17.3% to 5.43 crore

1.26 crore New Tax payers were added (Return Filers + Non-filers making Tax payments) were added to the
tax base till 30.06.2017

Collection of Advance tax under Personal Income showed growth of 41.79% growth (as on 05/08/2017)
against corresponding period in FY 2016-17

Collection of Self Assessment Tax under Personal Income Tax showed a growth of 34.25% Growth over the
corresponding period Fy 2016-17

Quantum jump in Enforcement actions based on Demonetization 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)
File Updated as on 4/09/2017

44% increase in undisclosed income detected (from Rs. 9654 crore to Rs. 13920 crore)

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170405

14,000 properties of Rs 1 cr each under scanner

While Rs 15,496 crore was admitted as undisclosed income,

http://www.hindustantimes.com/india-news/demonetisation-i-t-dept-says-14-000-properties-of-rs-1-cr-
each-under-scanner/story-aPa2VIYvZlV1OB5RyErpxJ.html

Transactions of more than 3 lakh registered companies are under the radar of suspicion while 1 lakh
companies were struck off the list, the government has said. It has already identified more than 37,000 shell
companies which were engaged in hiding black money and hawala transactions. Around 163 companies
which were listed on the exchange platforms were suspended from trading, pending submission of proof
documents.

http://economictimes.indiatimes.com/articleshow/60306431.cms?utm_source=contentofinterest&utm_med
ium=text&utm_campaign=cppst

As per RBIs Annual Report at page 127 under Chapter VIII - Counterfeit Notes and Security
Printing VIII.9 informs that during 2016-17, 762,072 pieces of counterfeit notes were detected
in the banking system, of which 95.7 per cent were detected by commercial banks. Detection of
counterfeit notes was 20.4 per cent higher than the previous year.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170379

The Income-tax Directorates of Investigation have identified more than 400 benami
transactions up to 23 May, 2017 and the market value of properties under attachment is
more than Rs. 600 crore.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170378

The total assets under management (AUM) of Mutual funds (MFs) rose by 54% by the
end of June 2017 from March 2016

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170378

The total currency in circulation of all denominations as on 8th November, 2016 was
17.77 lakh crore whereas total currency in circulation as on 4th August, 2017 was 14.75
lakh crore.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=170378
File Updated as on 4/09/2017