Almost a year ago the nation embarked into uncharted territory, when PM Modi in his speech announced his government’s decision to demonetise old Rs 500, Rs 1000 notes. This set forth both political and economic chain reactions whose effects we are still seeing.
While the opposition like the Congress party is busy painting an extremely negative picture, by observing a “black day” on 8th November, the scheme has received a boost in the form of higher e-filing of Income tax returns.
As per reports, the e-filing of Income Tax returns increased by 17% post demonetisation and this number increases to 23% in the “individual filers” category. As per data, a total of 3,21,61,320 returns were filed till 31st October 2016 which rose to 3,78,20,889 returns in the October end period of 2017.
As per an income tax official, such an increase in this data is due to demonetisation as the IT department had asked people to file their returns so that they come clean with respect to their post demonetisation transactions.
The IT department has till now chosen to scrutinise about 20,572 tax returns suspecting discrepancies.
We have also reported in the past about the lesser known effects which demonetisation has brought about.
This includes the banks providing shocking data with regards to the suspected transactions during the demonetisation period. Here the government has been known to receive vital information about bank account operations and post demonetisation transactions of some suspected companies which have been struck off the Register of Companies, earlier this year. Via this data provided for just 2.5% of these companies, it was seen that a whopping Rs. 4,573.87 crore were deposited and Rs 4,552 crore were withdrawn from their accounts post 8th November 2016.
We had also carried a personal account of a Chartered Accountant who recounted in detail how many of clients that possessed black money, have come under scrutiny of the Income Tax officials.