Demonetisation effect: Govt collects Rs 6000 crore tax on unexplained cash deposits after note ban

BT Online   New Delhi     Last Updated: March 18, 2017  | 13:59 IST
Demonetisation effect: Rs 6000 crore tax collected on unexplained cash deposits after note ban

The Central government has collected over Rs 6,000 crore as tax on unaccounted deposits post demonetisation, reported the Economic Times.

According to the report, Justice Arijit Pasayat, Vice-chairman of the SIT on black money, said that the amount could further go up.

The tax authorities have sought explanation from individuals, who deposited substantial amount of cash after demonetisation, either in their own account or in the name of others, the report said.

Informing about the latest development, Pasayat said as many as 1,092 people, who had deposited over Rs 50 lakh, have not yet responded to notices.

"The onus is on those who have deposited huge cash to explain the source," Pasayat further Said.

"The authorities, while examining the huge bank deposits, will finally have to come down to the macro level at some point of 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," ET quoted Pasayat as saying.

Many later agreed to avail the amnesty scheme which earlier allowed compounding by payment of 60 per cent of the deposits as tax, now hiked to 75 per cent, the report said.

Soon after the government announced the demonetisation of old Rs 500 and Rs 1,000 notes, SIT Chairman & Former Judge of the Supreme Court of India Justice MB Shah and SIT Vice- Chairman Justice Arijit Pasayat wrote a letter to Union Finance Minister Shri Arun Jaitley suggesting him some of the measures to ensure that the people holding black money in cash are not able to convert it.

After the reports of people buying gold, they suggested that the deposits made by jewelers should be correlated with their sales and PAN number of the buyers of jewellery. "The same should then be analyzed against known sources of income of PAN holders and action taken accordingly," the letter said.

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