In a tweet on Sunday, Modi said the move helped reduce black money, increased tax compliance and formalization, and gave a boost to transparency, and the results have been beneficial to the country’s progress.
Demonetization has helped reduce black money, increased tax compliance and formalization, and boosted transp… https://t.co/vecKL0Ggop
– Narendra Modi (@narendramodi) 1604824652000
In the charts accompanying the tweet, the Prime Minister noted that India had become a less cash-based economy with better tax compliance. It said that the self-assessment tax of more than Rs 13,000 crore was paid by the target non-filers and people of 3.04 lakh were identified who deposited cash of Rs 10 lakh or more but had not submitted their tax returns.
He also stated that the demonetization helped improve India’s tax / GDP ratio.
Prime Minister Modi, in a late night televised message four years ago, announced the recall of higher denomination banknotes. All old 500 and 1000 rupee notes were no longer legal tenders after the announcement. Long lines were witnessed outside the ATMs for several days after that, as people tried to get new banknotes in hand.
Most of the old notes in circulation were deposited in banks.
The measure was criticized by various sectors and the opposition claimed that it had damaged the economy.
(With contributions from the agency)
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