The Government of India decided to cancel the Legal Tender Status of Rs.1000 and Rs.500 denomination currency notes on 8th November 2016 with several objectives: (i) flushing out Black Money, (ii) eliminate Fake Indian Currency Notes (FICN),
(iii) to strike at the root of financing of terrorism and left-wing extremism, (iv) to convert non-formal economy into a Formal Economy to expand Tax Base and employment and (v) to give a big boost to Digitalization of payments to make India a less cash economy.
Effect & Benefits of Demonetisation
56 lac New Taxpayers Added post-DeMo.
Tax Base increased by 1.26 crore taxpayers.
The number of Returns filed registered an increase of 24.7% over previous year of 9.9%
Net currency circulation reduced by Rs. ~3 trillion i.e 21%
Interest rates reduced by 100 bps.
Digital transaction increased by 65%
Deposits in Banking increased by 3 lac crore.
16,000 crore didn't came back to Bank
4.73 lac suspicious transaction detected
All Transaction above 3 lac under Scrutiny
Jewellery demand plunged by 80%
Assets under management (AUM) of MFs rose by 54%.
More than 1 crore workers added to EPF & ESIC.
Under IDS'15 a total of 3,770 crore declared.
Under IDS'16 a total of 65,250 crore declared.
52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts in India
21000 ppl declared 4,900 crores under PMGKY
34 Big CAs under Investigation. The real culprit
460 banks officials punished for alleged irregularities: CVC
5,800 Cos with 'withdrawal syndrome' under government scanner
Notices to 1.16 lakh for cash deposit of over Rs 25 lakh
5000 Tax notices who deposited more than 1 Crore.
18 Lac Accounts scrutinized & Notices been sent under 'OCM'.
5.56 lakh more ppl identified whose deposits do not match their income profile
35,000 shell companies were struck off.
About 200 high risk clusters of persons were identified for appropriate action.
2.1 lac shell companies De-registered
GoI to de-register 1.2 lac more shell companies.
3.09 lac Board of Directors disqualified.
Undisclosed income of 42,448 crore admitted u/s 132(4).
Fact remains 1,65,396 Cr worth of 'Black Money' had been captured/ admitted/came back post IDS & due to #DeMo. Recovery by ED & Recoveries under 'Benami' & 'Imposition' Tax are additional. Total of 2,12,360 crore worth of 'Black Money' have been ceased in last 4 Years.
And of-course 'Currency' came back to Banks doen't mean it is not Black Money. The ceased amount is also been deposited.
I am not a "Financial Expert" but what written about are basic points which anyone can understand if they read #DeMo from a neutral mind