Taxation
Rs4,807 cr black income detected, Rs112 cr of new notes seized
Following the demonetisation of high-value currency announced on November 8, India's Income Tax Department has detected undisclosed income of over Rs 4,807 crore and seized new notes worth Rs 112 crore, an official source here said on Sunday.
 
Since the demonetisation intended to eliminate black money, counterfeit currency and terror financing, the tax authorities carried out 1,138 search, survey and enquiry operations and have issued 5,184 notices to various entities on charges of tax evasion and currency dealing through hawala channels, the source said.
 
The total undisclosed income admitted or detected till January 5 is over Rs 4,807 crore, he added. 
 
According to the official, cash and jewellery worth over Rs 609.39 crore has been seized during the same period, while the new currency seized is valued at more than Rs 112 crore.
 
On Decmber 16, the I-T Department had announced it had uncovered concealed income to the tune of Rs 2,600 crore and had seized a total of Rs 393 crore involving nearly 300 cases.
 
Briefing reporters here, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said: "We have conducted searches and seizures in about 291 cases, carried out surveys in 295 cases. 
 
"We have seized currency notes over Rs 316 crore in raids, including Rs 80 crore in new notes. Besides, jewellery of Rs 76 crore has also been seized making for a total seizure of Rs 393 crore."
 
The head of India's Income Tax Department also said that 3,000 notices have been issued on the basis of their analysis of deposits made since demonetisation was announced last month.
 
Meanwhile, describing the currency deposited with banks following demonetisation as money that has lost its earlier "anonymity", Union Finance Minister Arun Jaitley on Sunday said such deposits do not automatically become legitimate, and can now be identified with the owner for taxation purposes.
 
"Black money does not change its colour merely because it is deposited in bank. On the contrary, it loses its anonymity and can now be identified with its owner," Jaitley wrote in a Facebook post titled "Demonetisation -- A look back at the last two months". 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

B. Yerram Raju

2 weeks ago

Who will conduct the search of all the Income Tax Inspectors and Income Tax Officials' accounts and assets? If the Government opens this window quite a bit of black money can be unearthed. Second, the doctors - even the tax sleuths would be afraid of touching them because who knows when they need the services of the doctor on whom the inquiry is on. There will be many skeletons in the cupboard. Open them.

REPLY

Dalip Singh

In Reply to B. Yerram Raju 3 days ago

not a single raid on Bollywood IPL/BCCI or in KASHMIR !As for fake currency even RBI unable to detect !

Demonetisation: Banks asked to obtain PAN from account holders
As part of the drive to unearth black money, the government has asked banks to obtain the permanent account number (PAN) or Form 60 if PAN is not available, from all bank account holders by February 28, 2017, an official statement said on Sunday.
 
"Income Tax Rules have been amended to provide that bank shall obtain and link PAN or Form No 60 (where PAN is not available) in all existing bank accounts, other than Basic Savings Bank Deposit Accounts (BSBDA), by February 28, 2017, if not already done," a Finance Ministry statement here said. 
 
The ministry advised persons with bank accounts who have not submitted PAN or Form No 60 to submit the same to the bank by February 28, 2017.
 
This rule, however, will not apply to the BSBDA, which are zero balance savings accounts, including the Jandhan accounts designed to promote financial inclusion, the statement said.
 
The Reserve Bank of India had, last month, mandated that no withdrawal shall be allowed from the accounts having substantial credit balance or deposits if PAN or Form 60 is not provided in respect of such accounts.
 
"It has also been provided under the new rules that person who is required to obtain PAN or Form No.60 shall record the PAN/Form No.60 in all the documents and quote the same in all the reports submitted to the Income Tax Department," the statement added.
 
The ministry also said that banks and post offices had been mandated to submit information in respect of cash deposits from April 1, 2016 to November 8, 2016 in accounts where the cash deposits during the period November 9, 2016 to December 30, 2016 exceeds the specified limits.
 
The move aims to analyse the banking transactions carried out in months before the demonetisation decision was announced on November 8. On that day, Prime Minister Narendra Modi had announced that Rs 1,000 and Rs 500 notes were no longer legal tender. Citizens were given up to December 30 to deposit the demonetised currency in banks.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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7.1% GDP estimate erroneous, says Icra
The advance estimate of 7.1 per cent GDP released by Central Statistical Organisation (CSO), will have major errors as it does not include the data for the months after demonetisation, domestic rating agency Icra has said.
 
The agency on Friday pegged the expected growth for 2016-17 lower at 6.8 per cent.
 
"Given the impact of demonetisation on actual activity from mid-November 2016 onward, projecting GDP growth for the full year by extrapolating the trends up to October 2016 for several sectors, may introduce more errors than in earlier years. This would be particularly apt for cash intensive sectors such as construction," Icra said in a statement.
 
The advance estimates released by the CSO of growth in FY2017 are unsurprising, as they draw heavily from the available data for the first half of this fiscal, it said.
 
"However, Icra expects GDP (gross domestic product) and GVA (gross value added, which excludes taxes and subsidies) growth for FY2017 at 6.8 per cent and 6.6 per cent respectively, appreciably lower than the advance estimates," it said.
 
The CSO pegged the country's gross domestic product at 7.1 per cent in 2016-17 compared with 7.6 per cent in 2015-16.
 
The anticipated growth of real GVA in 2016-17 is 7 per cent against 7.2 per cent in 2015-16, according to CSO estimates. 
 
"The growth in deposits is an outlier, hence November data was not used for the financials," India's Chief Statistician T. C. A. Anant had said, implying that demonetisation is not a normal factor in the calculation of annual national income.
 
Icra said: "Given the unfolding trends, we expect actual FY2017 growth to be lower than the advance estimates for sub-sectors such as manufacturing, agriculture, electricity and construction."
 
In contrast, the recent uptick in commodity prices may well result in a somewhat improved GVA performance of the mining sector in H2 FY2017 as compared to the year-on-year decline in the first six months of FY2017, the agency added.
 
"Moreover, the unavailability of corporate filings for third quarter of FY2017 and second advance estimates of rabi output (as opposed to the available data on sowing), are likely to constrain the accuracy of the advance estimates," the statement said.
 
While rabi sowing has grown by a healthy 7 per cent on a subdued base, activity and incomes related to non-crop agricultural sectors including horticulture and livestock may have been adversely impacted by the liquidity crunch, it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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COMMENTS

B. Yerram Raju

2 weeks ago

Why are we obsessed with growth figures based on GDP which by itself is a poor indicator? GDP does not capture many activities in the economy and there is still a lot of debate on this measure.

REPLY

Dalip Singh

In Reply to B. Yerram Raju 3 days ago

Well said.Nothing but hogwash like all the Jumlaonics

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