Whereas; Rs.1.5 lakh crore generated from illegal activities may not come to banks but SBI estimates Rs 13 lakh crore worth of banned notes to get deposited
A Study Report By:
Harbans S Nagokay.
Jammu, December 5
Though! The Income Tax department has rejected a whopping Rs. 2 lakh crore disclosure by a Mumbai-based family under the ‘Income Disclosure Scheme’ which closed in September. A probe is on against the family members to determine the intention behind their claims, officials said.The family of four declarants – Abdul Razzaque Mohammed Sayed (self), Mohammed Aarif Abdul Razzaque Sayed (son), Rukhsana Abdul Razzaque Sayed (wife) and Noorjahan Mohammed Sayed (sister), who were shown as residents of Bandra in Mumbai – filed a total declaration of Rs. 2 lakh crore, the finance ministry said.
The Best Expected Now, is:
Rs 2 Lakh Crore Could Be Government’s Gain from Note Ban.
Rs 1 lakh crore could come under the self-declaration scheme.
Under the recent self-declaration of undisclosed income scheme, taxpayers may declare undisclosed income by paying around 50 per cent tax.
The declaration was “found to be suspicious in nature being filed by persons of small means,” the ministry said. Under the Income Disclosure Scheme, the government had offered a 4-month window to holders of black money to come clean by paying a tax of 45 per cent. Since demonetization was announced on November 8, how much old 500 and 1000 rupee notes will not come back into the banking system has been a subject of intense speculation. The economic research department of SBI expects Rs 2.5 lakh crore not to come into the banking system.
According to SBI’s estimates, Rs 13 lakh crore worth of banned notes might be deposited in the banking system out of the total value of high denomination currency in circulation (before November 8) worth Rs 15.5 lakh crore.
This means that around Rs 2.5 lakh crore might not be coming back into the system, the bank said in a report.Of the total Rs 2.5 lakh crore not coming into the banking system, the amount not coming back altogether due to unlawful activities, for example, could be around Rs 1.5 lakh crore, the report said. “We conservatively assume that Rs 1,500 billion (Rs 1.5 lakh crore) will not be disclosed by the individuals and this will purely be an extinguished currency liability,” the report said.
Soumya Kanti Ghosh, the author of the report and group Chief Economic Adviser at SBI, told media-reporters that the extinguished currency liability is among the things “that the RBI and the government need to work out.” Out of the Rs 2.5 lakh crore, Rs 1 lakh crore could be disclosed under the recent self-declaration of undisclosed income scheme, the report said. Under the scheme, taxpayers may declare undisclosed income by paying around 50 per cent tax. “This means there will be an immediate short term benefit to the government will be Rs 500 billion (Rs 50,000 crore),” And, we believe that taxes collected will be beneficial to the government rather than currency getting extinguished as such taxes could be immediately factored in next year budget for welfare needs,” the report said.
This means on the RBI’s balance sheet, the liability in the form of notes issued gets extinguished to the extent the banned notes are not deposited.Mr Ghosh said that at this juncture it is too early to talk about how fast the Indian economy would rebound from the anticipated slowdown caused by demonetization.
It depends on how fast the withdrawal limits are relaxed, he said.
Then, according to experts in IT department, the declaration of Rs. 2 lakh crore at Mumbai is thrice the amount of total Rs. 67,382 crore black money disclosed under Income Declaration Scheme. That amount declared by the ministry does not take into
consideration the Rs. 13,860 crore declaration made by Ahmedabad-based Mahesh Kumar Champaklal Shah.The money the Sayed family has disclosed is 53 times of the total Rs. 3,770 crore disclosed under last year’s foreign asset disclosure scheme. The quantum of the amount accounts up to nearly 14 per cent of the total value of banned 500 and 1000 rupee notes, which is around Rs. 14 lakh crore, under the demonetization drive.The declared sum is nearly 2 per cent of the market capitalisation of all the companies listed on the BSE. And it is 45 per cent of the market value of India’s most valuable company, Tata Consultancy Services.In comparison, the average amount declared by around 65,000 declarants under Income Disclosure Scheme is just Rs. 1 crore.
At the end, JK News Point Team would like to share another ‘GOOD NEWS’ As ‘The Biggest Positive Result of Demonetization’ ‘ THE MAN BEHIND FAKE INDIAN CURRENCIES – COMMIT SUCICIDE IN PAKISTAN.
Yes! Javed Khanani, director of Khanani and Kalia International Money changers, committed suicide in Karachi on Sunday. Khanani died reportedly after falling from an under construction building but according to reliable sources it is a suicide as his main business is of faking Indian currency that got a big hit due to the demonization effort of PM Modi’s Government.