Lok Sabha Question No. 1319 (UNSTARRED), answered on 2017-12-22
Subject: Tax Payers Post Demonetisation
Ministry: FINANCE
Asked by: RAJESH KUMAR DIWAKAR, K. GOPAL

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO.1319

TO BE ANSWERED ON FRIDAY, THE 22 ND  DECEMBER, 2017

PAUSHA 1, 1939 ( SAKA )

## TAX PAYERS POST DEMONETISATION

## 1319: SHRI RAJESH KUMAR DIWAKER: DR. K. GOPAL:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has brought about 5 crore tax payers in the tax net and detected undisclosed income worth Rs. 84144 crore in the one year after demonetisation and if so, the details thereof;
- (b) whether there is a moment towards digitisation and the number of assesses and quantum of tax received has increased after demonetisation and if so, the details thereof;
- (c) whether it is no longer safe to deal with excessive cash as it has become easier to detect tax evaders through technology and if so, the details thereof;
- (d) whether there has been a 22 per cent growth in e-filed returns post demonetisation and if so, the details thereof; and
- (e) the details of the total tax collection during the period of 2016-17?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI SHIV PRATAP SHUKLA)

(a) to (e): During the period from November 2016 to March 2017, the Income-tax Department (ITD) conducted searches on around 900 groups, wherein undisclosed income of over Rs. 7,900 crores was admitted. During the same period, more than 8200 surveys were conducted leading to detection of undisclosed income of more than Rs.6700 crores. Further, during the period from April 2017 to October 2017, around 275 groups were searched by the ITD in which undisclosed income of over Rs. 7800 crores was admitted. During the same period, more than 3100 surveys were conducted by the ITD in which undisclosed income of over Rs. 2400 crores was detected.

The number of assessees (taxpayers) has increased post demonetization. During the current financial year (up to 7.11.2017), 3.89 crore income-tax e-returns were filed as compared to 3.25 crore e-returns filed during corresponding period of last financial year, which translates into a growth rate of 19.5%. The quantum of net direct tax collections in FY 2017-18 (up to November, 2017) has increased to Rs.4.8 lakh crore (provisional) as compared to Rs.4.20 lakh crore collected during corresponding period of last year registering a growth rate of 14.3%.

Various steps taken by the Government to curb cash transactions include:-

- -Central Board of Direct Taxes (CBDT) issued notification mandating PAN for all cash deposits above Rs. 50,000/- and aggregating to more than 2.5 Lakhs during the period from 9 November, 2016 to 31 December, 2016.
- -Further,  the  prescribed  reporting  entities  were  mandated  to  report  all  cash  deposits above Rs. 2.5 Lakhs in savings accounts and Rs. 12.5 Lakhs in current account during the above period.
- -Restriction on cash transaction of Rs. 2 lakh or more (Section 269ST of the I.T. Act) were imposed.
- -Further,  no deduction under section 80G allowed w.e.f. 01.04.2018 if cash donation exceeds  Rs.  2000, and  restriction  imposed  on  donations  of  Rs.2000/-  or  more  to political parties otherwise than by a bank account or through electoral bonds.
- -The AIR has been replaced with a new reporting regime- the Statement of Financial transaction  (SFT)  w.e.f  1.4.2016.  Under  SFT,  the  Form  61A  has  been  amended  to include furnishing of details about aggregate gross amount credited to the account in cash from 1st day of April, 2016 to 8th November, 2016 and from 9th day of November, 2016 to 30th day of December, 2016, apart from aggregate gross amount credited/debited to the account in cash during a financial year.
- -The  total  amount  of  direct  taxes  collected  during  FY  2016-17  is  Rs.8,49,818  crore (provisional) as against the Budget Estimates of Rs.8,47,098 crore.

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