PM Modi: Demonetisation helped reduce black money, increase tax compliance; Congress hits back

PM Modi: Demonetisation helped reduce black money, increase tax compliance; Congress hits back

On November 8, 2016, PM Modi had demonetised Rs 500 and Rs 1000 currencies.

Demonetisation has helped reduce black money, increase tax compliance and formalization, and given a boost to transparency, Prime Minister Narendra Modi tweeted on Sunday to mark the fourth anniversary of the contentious event. “Demonetisation not only brought transparency and widened the tax base, it also curbed counterfeit currency and increased circulation,” Finance Minister Nirmala Sitharaman also tweeted on Sunday. On November 8, 2016, PM Modi had demonetised Rs 500 and Rs 1,000 currencies to tackle the black money issue following which surveys conducted “led to unearthing of undisclosed income worth several crore, Operation Clean Money helped formalise the economy.”

Over 2,450 benami assets/properties valued at more than Rs 13,400 crores were provisionally attached and 458 case notices were issued involving undisclosed foreign assets and income of more than Rs 14,150 crore as on September 30, 2020, Sitharaman tweeted the data. Moreover, Rs 900 crores of undisclosed income was seized during the first four months of demonetization. Also, undisclosed assets worth Rs 3,950 crores were seized from 2017 till September 2020.

Also read: 4 years after demonetisation, cash continues to be used for these purchases, payments

Meanwhile, the Congress party launched #SpeakUpAgainstDeMoDisaster campaign on social media. “Demonetisation was the thoughtful move of the PM so that the loan of millions of crores of ‘Modi-Mitra’ capitalists could be forgiven with the money of the general public. Do not be mistaken – not a mistake, it was done intentionally,” tweeted party MP Rahul Gandhi on Sunday. After demonetisation 99.30 per cent returned to demonetized money system, but even after this, black money could not be detected, added Congress.

Sitharaman added that the number of income tax returns filed also increased from 4.04 crore to 6.79 crore in 2019 while net direct tax collections grew from Rs 6,95,792 crore in FY15 to Rs 10,50,678 crore in FY20. Also, direct tax to GDP ratio improved from 5.55 per cent in 2014 to 5.98 per cent in 2018.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Leave a Reply

Your email address will not be published. Required fields are marked *