Blackmoney Crackdown Boosts Taxes in India

May 4, 2017 Taxation in India

Indian RupeesNEW DELHI – By barring the use of selected bank notes, the government of India has managed to force millions of people to finally pay their taxes.

The efforts made this year by the government of India to drive down the use of black money and tax evasion have worked, with a large number of people now coming into the reach of the tax net.

Since the start of the crackdown on black money, the number of individuals who have filed tax returns has risen by approximately 9.5 million.

The tax net could even spread further, as the tax authorities are still on the lookout for taxpayers who are likely to have committed some tax evasion.

For the purposes of finding the tax evaders, the tax authority has compiled a list of 1.8 million individual who, following the demonetisation of selected bank notes, made deposits which exceeded their own declared income.

In a further effort to root out tax evaders, authorities also have a list of luxury purchases which were made immediately following the demonetisation, which will all be investigated to see if the buying occurred simply as a way to use up the soon to be worthless notes.

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