There have been a wide number of changes after the introduction of Demonetization act- having the Prime motive to curb Black Money by our PM Narendra Modi. Especially on part of sectors such as Manufacturing, real estate, trading and educational institutes are some of the top sectors that have yielded the maximum amount of black money. And demonetization has helped to get this into limelight.
The government’s focused crackdown on black money has led to an exponential increase in tax raids as well as unearthing of undisclosed money this year.
Data accessed shows a 132% jump in tax raids and 31% increase in black money unearthed, over the last year.
Here comes a warning bell to individuals and firms, who have deposited cash of more than Rs 25 lakhs in bank accounts, but have failed to file returns by the due date after the note ban was announced by PM Modi. These are about 18 lakh people who had deposited 500 and 1000 rupee currency notes over a total of Rs 2.5 lakh each.
“The Income Tax Department has slapped notices on 1.16 lakh individuals and firms who made cash deposits of more than Rs 25 lakh in bank accounts post note ban but failed to file returns by the due date” said the CBDT Chairman Sushil Chandra. He also stated that besides, large cash deposit by people who have filed I-T returns are also under close scrutiny. The notice is under section 142(1) of I-T Act.
Also, convictions have gone up to 43 from 13 last year, Chandra said. “So courts have given judgment for convicting people. So those 43 people will face sentences given by courts”.
According to the official data, 17.73 lakh suspicious cases involving Rs 3.68 lakh crore have been identified by taxmen in 23.22 lakh bank accounts post demonetization.
Responses from 11.8 lakh people for 16.92 lakh bank accounts had been received by the department online.
So far about 2.4 lakh people had made cash deposits of Rs 10-25 lakh who have not filed returns. They are likely to get notices in the “second phase, if they still do not respond further”.