Tags Posts tagged with "demonetisation"



After waging a war on the black money hoarders, money launderers and the black marketeers of the country, despite stiff opposition from the Congress led UPA against the flagship initiative of prime minister Narendra Modi on 8th November invalidating the high denominational notes of 500and 1000, the process of bringing more and more money launderers in is in the offing with the Income Tax department of the country singling out a massive number of 18 lakh serious defaulters who’d tried to ditch the government authorities by illegally depositing unaccounted sum of money after 8th November till 29th December, later on clandestinely withdrawing the same from the banks and either not showing it in their income tax annual returns or not filing the returns at all.

This illegal money called the unaccounted black currency have been deposited in several parrallel accounts opened by these depositers in several names of their employees, relatives, family members or shell companies. After the demonetisation phase the government had claimed to have strengthened the nation’s falling economy by way of collecting more than15 lakh crores and filling the financial coffers but the opposition parties particularly the Congress and its leader Rahul Gandhi has accused the ruling political dispensation of befooling the people of the country by making lakhs of employees of the private sector unemployeed and giving a golden opportunity to the illegal money hoarders of the country make their myriad black currency into white and so on n so forth.

It may be recalled that after the sudden declaration of the invalidation of the higher currency bills of 500 and 1000 which comprised of 86% of the money in circulation, there was total chaos in the country with banks and ATMs full of unending queues resulting in more than 200 deaths nationally and small and medium bussinessmen/ entrepreneurs constrained to close down their ventures with lakhs of employees becoming jobless.

But despite all this the BJP under prime minister Modi’s leadership won hands down in Uttar Pradesh, Uttarakhand etc given an unambiguous signal that finally all was well for the saffron party. The incometax department has issued notices and are minutely investigating about 18 lakhs bank accounts of the post demonetisation money launderers who’d deposited unaccounted or large sum of money without showing them in their annual IT returns ornot at all filing the same. However, after demonetisation the number of total income tax assesees have gone up to 3.7 crores during the year 2015, 16.

If we go by the official estimtes, about 17.73 lakh suspicious cases involving Rs3.68 trillion have been identified by the tax department in 23.22 lakh bank accounts post demonetisation. However 11.8 lakh people of 16.92 lakh bank accounts had responded to the department via online.

He said that incidences of pelting of stones and protests in J&K and naxal activities in affected districts have reduced as an impact of demonetisation as these miscreants have run out of cash.

Union Finance Minister Arun Jaitley said on Tuesday, 07 November 2017 that demonetisation is a turning point in the country’s economic history and has provided the next generation with a fair and honest system to live in.

In a blog 1,843 words long, Arun Jaitley said that, November 8, 2016 signifies the resolve of the government of India to cure the country from the disease of black money. He said that the day would be remembered as a watershed moment in the books of history of Indian economy. Doing an overall analysis, he said, it would right to say that the country has moved on to a more cleaner, transparent and honest financial system.

On the eve of the demonetisation, which invalidated 86 per cent of the currency in circulation, Mr. Jaitley said that it has met its objective of reducing cash in our economy, ending the anonymity of cash, brought more individuals inside the tax net and all the while dealt a blow to black money holders.

He said that the benefits of the move may not yet be visible to some people but the next generation of India would view the decision with a great sense of pride.

On November 8 2016, Prime Minister Narendra Modi had announced the demonetisation of Rs.1,000 and old Rs.500 notes for fighting corruption, removing black money, cutting terror funding and removing fake currency in one stroke. Total currency worth Rs.17 lakh crore approx. was in circulation in country on November 8 2016. Around Rs.15 lakh crore worth of currency was withdrawn and as on June 30, 2017, approx. Rs.15 lakh crore has been deposited back in banks.

Mr. Jaitley said that post demonetisation, the currency in circulation is less by more than Rs.3 lakh crore. This meets with the objective of less cash economy in order to reduce the flow of black money in to the system.

The removal of anonymity has led to 56 lakh new individual tax payers who are filing returns this year and self-assessment tax paid by non-corporates has increased by 34%. The leads gathered during demonetisation period have led to the identification of 2.9 lakh suspected shell companies and 2.24 lakh companies were de-registered as a result. Actions were taken to freeze their bank accounts. He said that more than 28,000 companies had deposited and approx. withdrawn Rs.10,000 crore from 50,000 bank accounts before they were struck off.

The Income Tax Department took action against more than a thousand shell companies that were used by over 22,000 beneficiaries in laundering more than Rs.13,300 crore. To stop further money laundering, SEBI has introduced a Graded Surveillance Measure at stock exchanges.

He said that incidences of pelting of stones and protests in J&K and naxal activities in affected districts have reduced as an impact of demonetisation as these miscreants have run out of cash.

He also said that demonetisation led to a leap in digital payments. And more than 350 crore transactions, valued at around Rs.6.6 lakh crore were carried out through credit cards and debit cards. The value of transactions for debit and credit cards was Rs.4 lakh crore during 2015-16.

Jaitley said that, with the return of cash in the banking system, now almost entire cash holding in the economy can be tracked. This inflow includes suspicious transactions ranging over Rs.1 lakh crore. The tax administration is now using data analytics to find and crack suspicious transactions.



The Congress Party vice president and Nehru Gandhi family scion Rahul Gandhi’s incessant Gujarat visits and his vociferous attacks on Prime minister Narendra Modi and BJP led NDA government at the centre on GST and demonetisation is the only issue that is being emphasised repeatedly with no emphasis on issues like inflation and unemployment. While Rahul Gandhi’s impact in Gujarat is gaining a positive aspect in terms of enhancement in large crowds in his rallies and consolidation of the minority vote bank alongwith the vote of anti incumbency as the BJP is ruling in Gujarat for the protracted period of nineteen years, the Congress party workers and leaders are finding it difficult to explain the people about the demerits of GST as they have not been educated in detail about the intricacies of the complex GST functioning leading to problems to small and medium businessmen and traders. The increasing activity and performance of Rahul Gandhi in social networking sites, particularly the twitter compounded with his furious targetting of BJP leadership in the context of Gujarat election with his fire brand speeches has constrained BJP to adopt a more attacking mode leading the state chief minister Rupani accuse Ahmed Patel, the Congress Rajya Sabha member and Sonia’s political secretary of allegedly in league with anti national elements which finally got badly back fired. Rahul’s highly successful Bharuch rally of Gujarat held on 1st November after successes of other previous rallies during the last few days under his Gujarat mission has definitely send threatening signals to BJP but if we go by the recent opinion polls BJP still seems to be far ahead in Gujarat. The major draw back for the Congress party in Gujarat is that while BJP has no dearth of political leaders right from prime minister Modi to party chief Amit Shah to Gujarat CM Rupani to the entire cabinet in Congress except Rahul Gandhi no other leader carries any special or significant political impact or charisma on the electorates of Gujarat as the Gandhi scion. Moreover, the entire state and central machinery was at work prior to the declaration of the election dates and subsequent code of conduct with announcement of pre election freebies, worth thousand of crores. The former CM Gujarat Shankar Singh Vaghela had also left Congress and few MLA’s as well. While the Gujarat election is a litmus test for prime minister Narendra Modi after spate recent victories in UP, Uttarakhand etc it’s no less significant for Rahul Gandhi, as well, who is likely to be appointed as the Congress Party chief, the party that is 135 years old and ruled India for more than 60 years.


Ever-strengthening rupee is also a significant challenge to the domestic industry as cheaper imports flood the country.

It looks as if the growth rate will be below 7% this fiscal year which translates roughly to a loss of ₹1.5 lakh crore of national income. What it signifies is millions of jobs not created.

Ever-strengthening rupee is also a significant challenge to the domestic industry. Since January the rupee is 7% stronger compared to the American dollar. It is stronger than its Asian peer currencies too, including China, the Philippines, Indonesia and Thailand. This directly hurts our export prospects.

The strong rupee also hurts the domestic industry since cheaper imports flood the country. The GST regime has given an extra advantage to importer traders since the countervailing duty that they now pay as GST can be offset against other taxes.

Demonetisation has its adverse effects as well. Investment and consumption spending which were postponed due to cash shortage might recover but jobs that are lost are lost forever.

The agriculture sector GDP shows nominal GDP growth to be lower than real GDP, which will mean depression in farmers’ incomes.

Solution to these problems is a big pick-up in manufacturing and private investment spending. Structural reforms of GST, the new insolvency code, the new monetary framework and Aadhaar linkage might show better results in the medium to long term.


It is now clear that Delhi Chief Minister Arvind Kejriwal lied about wedding of BJP MP Mahesh Sharma’s daughter and today he has faced lot of criticism and embarrassment but till now he has not apologize for his misbehaving on twitter.

He was so disturbed from the demonetisation drive of BJP Government that he focused his energy on wedding of daughter of Mahesh Sharma and without checking any facts he asked on twitter whether Mahesh Sharma has performed all wedding tasks with cheques and how did he managed to exchange the notes he also asked that how Mahesh was able to manage the entire wedding with Rs 2.5 lakh.

Later Mahesh Sharma clarified on Twitter that his son was getting married and not his daughter and further told that all the payments for the wedding were made with cheques.

Kejriwal is famous for creating unnecessary drama by always attacking Narendra Modi and Central Government. He keeps on blaming the Central Government and tries to hide his in capabilities because he is only CM who is facing all the problems from Narendra Modi and Central Government whereas other cities are working fine and their chief ministers are focusing in their tasks.

This is not the first time he has circulated a fake news about BJP but earlier also he claimed that a youth committed suicide due to demonetisation but later it was found that the youth committed suicide after a failed bank robbery.

This time in Mahesh Sharma’s son wedding case he has been caught red handed that he is clearly not focusing on his work and without knowing the facts trying to create mass around by simply blaming anyone who is in BJP or supports the demonetisation decision.

He even claimed that Narendra Modi took bribe from some industrialist when he was the Chief Minister of Gujarat. He also showed some documents to the media as proof to support his claims. He even filed a case against Narendra Modi with help of senior lawyer Prshant Bushan in the apex court but the court rejected the evidences against PM Narendra Modi.

A small advice for him is that he should focus on various pending issues and development of Delhi instead of chasing Modi and Central Government.

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