Monday, October 26, 2020
Home News Reports 3 years of Demonetisation: Here are 10 most important goals it managed to achieve

3 years of Demonetisation: Here are 10 most important goals it managed to achieve

The Registrar of Companies (ROCs) removed the names of 2,26,166 companies during 2017-18 and 1,12,797 companies during 2018-19, respectively from the register of companies. These companies had not filed their financial statements and or Annual accounts for a continuous period of two immediately preceding financial years.

It has been three years since Prime Minister Modi stunned the nation with a bold move to curb the parallel economy that had taken root in India – Demonetisation. Over the three years, many political and economic pandits predominantly from the Left have decried the move and asserted that it was an exercise in futility. However, Demonetisation has achieved several objectives in these three years.

Cancellation of the Legal Tender Status of Rs.1,000 and Rs.500 denomination currency notes on November 8, 2016, popularly known as demonetisation not only became a milestone in India’s fight against corruption but also began to create a culture of pride in honesty. It restored the honour of the honest.

Read: PM Modi’s GST and demonetisation played a big role in the formalisation of over 2 million jobs: ISF report

  • Shock to black money accumulators: For three years, demonetisation has been an eyesore for those who had a free run in generating and accumulating black money but suddenly had to face the full force of the law. 
  • Corrupt crying the loudest: Those who have been crying foul for three years are the same kind of people who either kept quiet or were active beneficiaries of a system of tax evasion, tax avoidance, generation of black money or promoters of shell companies.
  • Rise in tax returns and tax collection: The upsurge in the number of tax returns filed is more than sufficient proof of the success of demonetisation being able to bring into the system the accumulation of wealth which was happening outside the purview of the formal economy.
  • Body blow to shell companies: Registration of more than three lakh companies has been cancelled and yet there has not been a whimper of protest. What can be more proof that these were shell companies opened with the sole purpose of money laundering? An entire network has been forced shut in one simple step. 
  • Rise in the culture of honesty: The giant leap in the digital payments system is proof that the common people have embraced the message of demonetisation and have been equal partners with the government in promoting a culture of honesty. 

Following are the 10 most important goals that Demonetisation achieved in the past three years.

Immediate Impact – Unearthing of Undisclosed Income

During November 2016 to March 2017:

  • Searches conducted led to the seizure of Rs. 900 crores, including cash of Rs. 636 crores and admission of undisclosed income of Rs. 7,961 crores.
  • About 8,239 surveys were conducted leading to the detection of undisclosed income of Rs. 6,745 crores.

Clean Money, Cleaner Economy, Thanks to Demonetisation

  • Operation Clean Money was launched on 31st January 2017 to follow up on the action of demonetisation, to create a tax-compliant society.
  • Cash deposit data during demonetisation was analysed to identify persons whose cash transactions did not appear in line with the tax payer’s profile.
  • This analysis resulted in the identification of about 17.92 lakh persons for online verification process in the first phase.

When Non-Filers Became Filers; Non-Compliance Became Compliance

  • 04 lakh persons who deposited cash of Rs 10 Lakh or more but had not filed their return of income till the due date of filing returns were identified.
  • 09 lakh such identified non-filers responded. These persons paid self-assessment tax of Rs. 6,531 crores.
  • Electronic campaigns for other categories of non-filers with and those with potential tax liabilities resulted in overall, Self-Assessment Tax of more than Rs 13,000 crore paid by targeted non-filers. 

Demonetisation Pushes Direct Tax in the Right Direction 

  • Net direct tax collections for 2017-18 was Rs. 10.03 lakh crore, which is 18% higher than the collections for 2016-17.
  • On the other hand, the growth rates in 2015-16 and 2014-15 were only 6.6% and 9.0%, respectively.
  • The growth rate of 2017-18 was the highest in seven financial years before it.
  • In 2017-18, personal income tax Advance Tax collections increased by 23.4% and Self-Assessment Tax by 29.2%.
  • In FY 2018-19, Corporate Tax clocked a growth rate of 16.2% and personal income tax of 12.7%.
  • Voluntary tax payments under Advance Tax in 2018-19 continued to increase at a healthy rate of 14.8% with Corporate Advance Tax increasing at 13.4% and personal income tax Advance Tax at 20.1%.

Demonetisation Widens Tax Base, Narrows Non-Compliance

  • During FY 2017-18, 6.86 crores ITRs were filed with the Income Tax Department as compared to 5.48 crore ITRs filed during FY 2016-17.
  • This showed a stupendous growth of 25%.
  • It is the best growth rate achieved in the five years before FY 2017-18.

New Filers Grow as Trust in New Economy Grows

  • During FY 2017-18, the number of new ITR filers increased to 1.07 crore, compared to 85.51 lakh new ITR filers during FY 2016-17, a growth of 25%.
  • In the years before FY 2016-17, new filers were between 50 lakh and 66 lakh.
  • There is a clear upswing in the new tax filers after 2015-16.
  • During FY 2018-19, 1.1 crores new ITR filers have been added
  • Besides, the number of persons filing return increased from 5.4 crores in FY 2017-18 to 6.3 crore in FY 2018-19.

Demonetisation Brings Corporate Compliance Like Never Before

  • During FY 2016-17, 8.01 lakh returns were filed by corporate taxpayers
  • During FY 2017-18, 9.38 lakh returns were filed, showing a growth of 17.2%.
  • This growth rate is more than five times higher than the growth rate of 3.0% in 2016-17 and 3.5% in 2015-16.

Notes in Circulation – the Difference Demonetisation Made

  • The notes in circulation as on November 4, 2016, were Rs. 17,741.87 billion
  • The notes in circulation had grown at an average growth rate of 14.51% year on year since October 2014. 
  • At this rate, notes in circulation would have increased to Rs. 25,122.53 billion as on May 31, 2019. 
  • However, it increased only to Rs. 21,713.85 billion as on May 31, 2019 (almost 20% lower than would it would otherwise have been).

Digital Payments Became a Way of Life, Thanks to Demonetisation

  • In November 2016, the volume and value of digital payments transactions were 833.18 million and Rs. 88,933.35 billion respectively. 
  • In June 2019, these were 2,368.72 million (184% more) and Rs. 143,378.42 billion respectively (60% more).
  • Volume has multiplied even faster than value, showing a broad basing of digital payments even for smaller payments.

Closure of Suspect or Shell Companies

The Registrar of Companies (ROCs) removed the names of 2,26,166 companies during 2017-18 and 1,12,797 companies during 2018-19, respectively from the register of companies. These companies had not filed their financial statements and or Annual accounts for a continuous period of two immediately preceding financial years.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

This time for Dussehra, feminists turn Laxman Rekha into a symbol of ‘patriarchy’: Here is why they are batshit crazy

The occasion is Dussehra and along expected lines, feminists are out in numbers in their attempt to prove that Ramayana, the tale of Maryada Purushottam Rama, reeks of misogyny.

‘What Mumbai Police is doing is wrong,’ I&B Minister Prakash Javadekar speaks up on the hounding of Republic TV and Arnab Goswami exclusively to...

Prakash Javadekar gave an interview to OpIndia Hindi Editor, Ajeet Bharti, where he answered questions on a host of issues.

How Indian ‘liberals’ decided to embrace Hindutva!

At his traditional Vijaya Dashami rally in Mumbai yesterday, Maharashtra CM Uddhav Thackeray put it clearly. One must take lessons in Hindutva from RSS chief Mohan Bhagwat.

Dainik Bhaskar uses NITian Anita Bharti’s image in an article about actress Preetika Chauhan’s arrest by NCB in drug case

Anita Bhati is a student of NIT Patna, who had recently started an online portal of 'TuOn', providing free coaching to students from 7th to 12th grade and those preparing for competitive exams

Editors Guild issues a shameful statement tacitly condoning witch-hunt against Republic TV and Arnab Goswami by Mumbai Police: Details

After almost two weeks of the witch-hunt launched by Mumbai Police against Republic TV and Arnab Goswami, the Editors Guild has finally issued a statement

The Ritika Jindal Syndrome: The desecration of the Temple in Himachal Pradesh shows the urgent necessity of reform in public administration

Ritika Jindal received huge praises for breaking an "age old parochial tradition". She also "taught lessons of equality to priests" apparently.

Recently Popular

Editors Guild issues a shameful statement tacitly condoning witch-hunt against Republic TV and Arnab Goswami by Mumbai Police: Details

After almost two weeks of the witch-hunt launched by Mumbai Police against Republic TV and Arnab Goswami, the Editors Guild has finally issued a statement

Kerala: Photographer Dia John depicts Hindu deity as smoking weed, deletes picture after outrage

Kochi-based Mukkootil Bhagavathy temple had filed a complaint against Dia John for hurting Hindu religious sentiments

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

‘He supplies drugs and girls’: Estranged wife of Mahesh Bhatt’s nephew Luviena Lodh alleges harassment by nephew-uncle duo

Luviena Lodh said that Mahesh Bhatt is the don of the industry, and he controls everything that goes on in the film industry

After Turkey President Erdogan says Macron ‘needs treatment’ over attitude to Muslims, Pakistanis trend #boycottfranceproducts on Twitter

Pakistani bots putting their weight behind Turkey president Erdogan's call of 'giving treatment' to French President Macron.
- Advertisement -

YouTuber Lakshay Chaudhary levels serious allegations of fraud against Gaurav Wasan of Swad Official whose video on ‘Baba ka Dhaba’ had gone viral

Gaurav Wasan of Swad Official had uploaded a video about the financial difficulties faced by the elderly couple of 'Baba ka Dhaba'.

Pakistan: Foreign Office summons French ambassador over Charlie Hebdo cartoons

Foreign Office, Pakistan summoned the French envoy for the public display of Charlie Hebdo cartoons in French govt buildings.

Rajasthan: Dalit salesman burnt alive by liquor contractors after pouring petrol for demanding five months due salary

The victim used to work at a liquor shop and had not been paid salary for five months. His charred body was found inside a deep freezer in the gutted liquor shop.

Sameet Thakkar sent to police custody by Nagpur court till October 30, was arrested for making ‘Baby Penguin’ remark against Aaditya Thackeray

Two FIRs were registered against Sameet Thakkar for allegedly making objectionable remarks against Uddhav Thackeray and son.

BJP emerges victorious in Ladakh Autonomous Hill Development Council elections, wins 15 out of 26 seats

The BJP has won 15 of the 26 elected seats in the Ladakh Autonomous Hill Development Council (LAHDC).

This time for Dussehra, feminists turn Laxman Rekha into a symbol of ‘patriarchy’: Here is why they are batshit crazy

The occasion is Dussehra and along expected lines, feminists are out in numbers in their attempt to prove that Ramayana, the tale of Maryada Purushottam Rama, reeks of misogyny.

Republic TV and Maharashtra govt lock horns in Supreme Court: CJI asks both to submit affidavits in 2 weeks

Arnab Goswami and the Maharashtra government are at loggerheads since Republic Bharat questioned the silence of Sonia Gandhi in Palghar Sadhus' mob lynching case.

‘China’s world domination is imminent and Europe should wake up to this danger’: Former German spy chief cautions against Beijing

Gerhard Schindler, the former German spy chief, has asked European countries, particularly Germany, to reduce its "strategic dependence" on China

‘What Mumbai Police is doing is wrong,’ I&B Minister Prakash Javadekar speaks up on the hounding of Republic TV and Arnab Goswami exclusively to...

Prakash Javadekar gave an interview to OpIndia Hindi Editor, Ajeet Bharti, where he answered questions on a host of issues.

Chile to rewrite its Pinochet-era constitution, over 78% of Chileans vote ‘yes’ in the referendum

Over 78% Chileans have voted in favour of a new constitution, to be written by an 155-member elected body.

Connect with us

245,563FansLike
468,958FollowersFollow
19,300SubscribersSubscribe