Demonetisation effect? More black money unearthed as tax raids increase | india-news | Hindustan Times
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Demonetisation effect? More black money unearthed as tax raids increase

india Updated: Mar 20, 2017 14:22 IST
Suchetana Ray

An IT department raid recovered Rs 5.7 cr cash in new notes, 32kg bullion and jewellery along with Rs 90 lakh in demonetised notes from a bathroom safe in Karnataka's Chitradurga district.(PTI File Photo)

The government’s focused crackdown on black money has led to an exponential increase in tax raids as well as unearthing of undisclosed money this year.

Data accessed by HT shows a 132% jump in tax raids and 31% increase in black money unearthed, over the last year.

Black money worth Rs 14,697 crore has been unearthed in the April to February period of 2016-17 against Rs 11,226 crore during the entire financial year of 2015-16. While in 2015-16, the tax department raided 447 entities, the number went up to 1037 entities in the April to February period of this financial year.

The surge is mainly because of the government’s stepped-up efforts to contain black money, sources said. “Given the government’s schemes for disclosing black money, the tax department wants more people to use them. Increased vigil will ensure more people opt for the black money disclosure schemes,” said an official.

Demonetisation has also contributed, added, shows the data. Black money worth Rs 5,400 crore was detected during tax raids between November 9, 2016 to January 10, 2017.

“During the two months of demonetisation between November to January, we unearthed unaccounted cash worth Rs 513 crore. Of this Rs 110 crore was in new currency,” said the official quoted above.

“The direct tax collection has jumped from 6% in 2015-2016 to 15% this year entirely on account of our action against black money,” revenue secretary Hasmukh Adhia had told HT in an earlier interview.

Searches during this year led to seizure of Rs 1,005 crore in cash and Rs 359 crore in jewellery, so far. Between April and March of 2015-16, the tax department’s haul of illegal cash and jewellery was Rs 471 crore and Rs 193 crore.

Manufacturing, real estate, trading and educational institutes top the sectors that have yielded the maximum amount of black money, explains a tax officer, who did not wish to be quoted.