Lok Sabha Question No. 144 (STARRED), answered on 2018-07-27
Subject: Demonetisation
Ministry: FINANCE
Asked by: RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY  OF FINANCE DEPARTMENT OF ECONOMIC  AFFAIRS LOK SABHA

## STARRED QUESTION NO. 144

## TO BE ANSWERED ON 27th JULY 2018/5th  SHRAVANA  SAKA, {940

## Demonetisation

## *14. SHRIRAMKUMARSHAR}IA:

## QUESTION

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

- (a) whether  the circulation  of currency  notes of Rs. 500 and Rs. 1000 denomination  rvas banned in the countr-v under demonelisation  two years ago and if so. the delails  thereof;
- (b) whether  it is a fact that the said decision  was taken by the Government  and ifso, the facts thereof;
- (c) whether there was a possibility  to check  the black money with the implementation of this decision;
- (d) if so, the reaction  of the Govemment thereto; and
- (e) the total amount  of black money  detected since the implementation of demonetisation?

## ANSWER

MINISTER OF FINANCE (SHRIPIYUSH GOYAL)

- (a) to (e) A Statement is laid on the table of the House.

## POSITION NO.4

## STATEMENT REFERRED  TO IN REPLY TO LOK SABHA STARRED QUESTION NO. I44 RAISED BY SHRJ RAM KUMAR SHARMA, HON'BLE MEMBER OF PARLIAMENT TO BE ANSWERED ON 27.07.20t8 REGARDING DEMONETISATION

- (a): The legal tender slatus  ofa500 and 1000 denominations of banknotes  of the Mahatrna Gandhi Series issued by the Reserve  Bank  of India till November 8, 2016, rvas withdrawn vide Govemmenl of India Gazette Notification No. 3407(E) dated November 08. 2016.
- (b): Govemment of India issued the notification rurder section 26 (2) of RBI Act, 1934 declaring  that the existing  series of banknotes of Rs, 500 and Rs. 1 000 shall cease to be legal tender with effect from November 9. 2016, based on the recommendation  of the Central  Board ofthe Reserve  Bank oflndia.
- (c) to (e): The Income tax Departrnent  (lTD) had taken  prompt action on those  found to have been involved  in misuse  ofthe  scheme ofdemonetization.  These actions included. among others,  conducting search  and survey actions in relevant cases. During the period November  201 6 to March, 201 7, Incometax Departrnent  (ITD) conducted  searches in 900 groups,  involved in various activities  and business, leading  to seizure ofRs. 900 crores.  including cash seizure  ofRs. 636 crores. During  the same period, 8239 surveys were conducted leading to detection  ofundisclosed  income  ofRs.6745 crores.

Further,  a dedicated campaign  was launched to take lbcused action on non-filers  of Income Tar Retums who had deposited large value of cash during demonetisalion  period.  Notices u/s 142(1) ofthe Income Tax Act. 1961 were issued  to 3.04 lakh persons  who had deposited cash of more than Rs l0 Lakh but had not filed their retum of income  till the due date of filing. As a result, relums were filed by 2.09 lakh of such identifred non-filers who h3r,e paid  self-assessment tax of Rs, 6,416 Crore. Because of sustained campaign  during F.Y. 2017-18. the net collection of direct taxes increased by 187o at 10.03 lakh crore. There  has also been exceptional gro*th in Persor.ral Advance Tu< of 23.1o/o and Personal Self-Assessment  Tax of 29.9Y0 in comparison  to previous  year.

During FY 2017-18,6.86 oore Income Tax Retums (lTRs) were filed *'ith lncome Tax Department  as compared to 5.48 crore ITRs filed during FY 2016-17,  showing a growth  of 25Vo. The table showing gror*'th rate of ITRs lbr last Iive years  is as belo*,:

| Financial Year   | No of Income Tar Returns   | Growth Rate as compared to previous Financial year   |
|------------------|----------------------------|------------------------------------------------------|
| 2013-14          | 379,73,22r                 | I                                                    |
| 2014-15          | 404.04,33e                 | 6%                                                   |
| 20t5-16          | 462.94,225                 | l5o/o                                                |
| 2016-17          | 548.83,401                 | 199'o                                                |
| 2017-18          | 686.74,904                 | 25%                                                  |