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Army to now help with the Disposal of Old Notes that went back to the Banks after Demonetisation

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An activist of Congress party hold the banned 500 and 1000 rupee notes during a protest march named as "Akrosh Diwas" against the government's decision to withdraw high denomination notes from circulation in front of Reserve Bank of India in Hyderabad, India, Monday, Nov. 28, 2016. Indian prime minister Narendra Modi, in his Nov. 8 televised address, announced the demonetization of India's 500- and 1,000-rupee notes, which made up 86 percent of the country's currency. He said it would wipe out rampant corruption, though in a country of 1.3 billion where most people don't have bank accounts, it also wiped out legally collected savings. (AP Photo/Mahesh Kumar A.)

New Delhi, May 23, 2017: After assisting the government in printing and transporting new currency notes, the army will now help with the disposal of old notes that went back to the banks after demonetisation.

According to army sources, the government has asked for “15 teams from the army for currency verification”. However, the official did not reveal the exact number of soldiers to be involved in the task.

It was also not clear what method of disposal was to be used. “The deployments will be completed by May 26,” an official said.
The official denied that army soldiers were to guard the Reserve Bank of India (RBI).

According to information provided by the government in a written reply to Lok Sabha, on the day demonetisation was announced, there was around Rs 8,58,253 crore in currency notes of Rs 500 and Rs 6,85,782 crore in Rs 1,000 notes.

While the RBI has not released any figure on how much of the old currency notes have come back to the banks, it is estimated that around Rs 15 lakh crore has been returned. This is around 95 per cent of the old Rs 500 and Rs 1,000 notes that were in circulation.

Post-demonetisation, as new notes of Rs 500 and Rs 2,000 were printed, the Indian Army was called to assist at the banknote printing presses due to the shortage of personnel to man the facilities round the clock.

Indian Air Force had transported over 600 tonnes of new currency after demonetisation, using its C-130s and C-17 aircraft.

On November 8, 2016, Prime Minister Narendra Modi had announced the spiking of higher value notes of Rs 500 and Rs 1,000. (IANS)

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Income Tax Officers Announce 17-point Checklist to Track Unaccounted Cash During Demonetisation

I-T Dept issues 17-point checklist to trace unaccounted DeMO cash

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income tax
Examination will take place of cash deposits from period April 2015 to November 8, 2016. Pixabay

In a bid to seize illegal cash, the Income Tax Department has issued a 17-point checklist to tax commissioners across the country to track those who deposited unaccounted cash during demonetisation.

In a directive to the Principal Chief Commissioners of Income Tax and Principal Director Generals of Income Tax, the Central Board of Direct Taxes (CBDT) said that in continuation of the handling of cases related to demonetisation, a verification checklist of cash deposits has been prepared to assist the assessing officers so that deviant cases can be taken up for further study.

The CBDT move is aimed at spreading the department’s net wide and deep to catch those who deposited unaccounted cash during demonetisation.

In this latest directive to tax officers, a 17-point checklist has been created, which has to be updated on the department’s server for further action. All unaccounted cash deposits made between November 9, 2016, and December 31, 2016, will be examined as part of this plan.

The checklist also says that if a taxpayer disputes the amount, the correct amount has to be mentioned after checking with the bank.

The particulars in the checklist are — return filing compliance, the total income of the taxpayer in 2016-17, gross total income (including exempt income) of the taxpayer in FY 2016-17 and percentage of cash deposit to gross total income (including exempt income).

IT Officers
This move is aimed to catch those who deposited unaccounted cash during demonetisation. Pixabay

The assessing officers will have to check on the checklist with regard to the nature of deposit on assessment of the explanation provided by the taxpayer and the quantum of unaccounted deposits as determined by the assessing officers.

On the response side, they have to file if the explanation was acceptable, partially acceptable or not acceptable. The nature of the deposit option could be sale or advance for sale of land or any other capital asset, gift, repayment of loan and cash in hand.

Some other verification checkpoints are whether the quarterly VAT return is revised in the post-demonetisation period, if small part of the cash is deposited in or withdrawn from the bank despite having huge cash in hand, if there are large changes in the purchase and sales figures between the original and the revised VAT returns and if the changes are for genuine reasons.

The assessment procedures as per the checklist are — if the books of the accounts have been rejected, if additions have been made u/s 68 to 69D and if tax is calculated as per section 115BBE and if penalty u/s 271AAC has been levied.

income-tax
On November 8, 2016, the Government of India had announced demonetisation of all Rs 500 and Rs 1,000 banknotes. Pixabay

The examination of monthly cash sales and cash deposits lists the period from April 2015 to November 8, 2016.

Also Read: Gold Price May Increase to Rs 40,000 per 10 Gram by Diwali

On November 8, 2016, the Government of India had announced demonetisation of all Rs 500 and Rs 1,000 banknotes. It also announced the issuance of new Rs 500 and Rs 2,000 banknotes. (IANS)