The impress ban performed a 365 days ago used to be a watershed moment within the nation’s economic history that has offered the following know-how with a beautiful and perfect system to reside in, Union Finance Minister Arun Jaitley acknowledged on Tuesday.
On the eve of the first anniversary of the determination to invalidate 86 per cent of the forex in circulation, Mr. Jaitley acknowledged the transfer had met its aim of lowering revenue the economic system, ending anonymity of cash, bringing in extra participants within the tax procure and dealing a physique blow to dim money.
In a 1,843 notice weblog, A Year After Demonetisation, he acknowledged that November 8, 2016 “signifies the uncover to the backside of of this authorities to cure the nation from the ‘dreaded disease of dim money’. November 8, 2016 would be remembered as a watershed moment within the history of Indian economic system. In an total prognosis, it can well well now now not be heinous to claim that nation has moved on to a necessary cleaner, transparent and perfect monetary system,” he acknowledged.
‘benefits may maybe well simply now now not yet be visible to some of us’
The benefits may maybe well simply now now not yet be visible to some of us. The next know-how would survey the submit- November, 2016 economic trend with a enormous sense of pride because it had offered them a beautiful and perfect system to reside in, he acknowledged.
On November 8 final, High Minister Narendra Modi announced the demonetisation of ₹1,000 and vulnerable ₹500 notes to “combat corruption, dim money, terrorism and erroneous forex.”
Of the ₹15.forty four lakh crore price of notes withdrawn from circulation, ₹15.28 lakh crore had been deposited wait on as on June 30, 2017. Forex price ₹17.seventy seven lakh crore used to be in circulation on November 8 final.
Mr. Jaitley acknowledged that submit the impress ban, the forex in circulation used to be less by ₹three.89 lakh crore, which has met the aim of less cash economic system in command to reduce back the circulation of dim money in to the system.
“With the return of ₹15.28 lakh crore within the formal banking system, nearly whole cash retaining of the economic system now has an address. It is a long way never any extra anonymous,” he acknowledged. From this inflow, the suspicious transactions below the radar ranged from ₹ 1.6 lakh crore to ₹1.7 lakh crore. The tax administration and other enforcement companies were using enormous records analytics to crack down on suspicious transactions, he acknowledged.
Undisclosed revenue admitted and detected, taken together, amounted to ₹29,213 crore, which is terminate to 18 per cent of the amount serious about suspicious transactions. Additionally, the elimination of anonymity with forex had ended in 56 lakh fresh person tax payers filing returns this 365 days till August 5 and self-evaluation tax (voluntary fee by taxpayers on the time of filing return) paid by non-company entities increasing by 34.25 per cent.
With an enhance in tax heinous and undisclosed revenue brought wait on into the formal economic system, the amount of Diagram Tax paid by non-company tax payers within the present 365 days had additionally elevated by about forty two per cent, Mr. Jaitley acknowledged.
Shell companies busted
“The leads gathered due to the records aloof at some stage in demonetisation duration ended in the identification of 2.ninety seven lakh suspect shell companies and a pair of.24 lakh companies were de-registered.” Additional actions were taken to quit operations of bank accounts of those struck-off companies. Actions were additionally taken for freezing their bank accounts and debarring their administrators from being on board of any company.
Mr. Jaitley acknowledged that out of the struck-off companies, 28,088 had deposited and withdrawn ₹10,200 crore from Forty nine,910 bank accounts from November 9, 2016 till the date of being struck off.
Simultaneously, the Earnings Tax Department took bound towards extra than 1,A hundred and fifty shell companies that were passe as conduits by over 22,000 beneficiaries to launder extra than ₹Thirteen,300 crore.
And the SEBI has offered a Graded Surveillance Measure at stock exchanges.
The Minister additionally acknowledged demonetisation looked to like ended in an acceleration within the financialisation of savings. “In parallel, there may maybe be a shift towards greater formalisation of the economic system within the terminate to term aided by the introduction of Unbiased valid and Services Tax (GST),” he acknowledged.
Broad leap in digital payments
Demonetisation additionally ended in a enormous leap in digital payments. As many as a hundred and ten crore transactions, valued at around ₹three.three lakh crore — and one more 240 crore transactions, valued at ₹three.three lakh crore — were applied via bank cards and debit cards respectively. The associated fee of transactions for debit and bank cards, in disagreement, used to be ₹1.6 lakh crore and ₹2.four lakh crore respectively at some stage in 2015-Sixteen. The associated fee of transactions with pre-paid instruments additionally elevated.
With greater stage of formalisation, staff like received social safety benefits as reflected in glorious enhance in opening of bank accounts for staff, enrolment in EPF and ESIC.
“The reduction in incidences of pelting of stones, protests in J&Ok and naxal actions within the LWE [Left Wing Extremism] affected districts are additionally attributed to the impression of demonetisation as these miscreants like elope out of cash. Their uncover entry to to erroneous Indian Forex New (FICN) used to be additionally restricted,” he acknowledged.