The primary motif of demonetisation according to PM Modi was the elimination of fake notes and black money which eventually result in financing terrorist actvities. After weeks of banning notes, the Finance Ministry has come up with a verdict supporting the decision of scapping notes. According to the Finance Ministry, no counterfeit notes were seized by agencies from Nov 8 to Dec 30. While an amount of Rs 474.37 crore in new and old currency was seized by Income Tax from Indians during the demonetisation drive from November 9 to January 4, the Ministry has said it has no information whether the persons from whom the cash was seized were terrorist groups or smugglers.
However, the ministry, has reported a 100 per cent increase in seizure of valuables and 51 per cent increase in undisclosed income admitted during the period April-December 2016, as compared to the corresponding period last year. During the period, there was an increase of 136 per cent in the number of groups searched than the last year.
The ministry also declared an increase in tax collections since the demonetisation was implemented. There is 12.01 percent rise in the net collection of direct tax, net growth of 24.6 per cent in personal income tax collections and 14.4 per cent rise in advance collection than what was recorded during corresponding period last year. “CIT (corporate income tax) advance tax is growing at 10.6 per cent while PIT (personal income tax) advance tax has registered a growth of 38.2 per cent,” the ministry told the PAC in response to its queries on demonetization, according to Indian Express.
The four secretaries from the ministry — Revenue, Expenditure, Department of Economic Affairs and Department of Financial Services — are expected to appear before the PAC on February 10.
As per reports from Indian Express, when asked PAC on how many counterfeit notes of Rs 500 and Rs 1000 denomination have been seized from terrorist groups, smugglers of arms, drugs and spies until December 30, the ministry said. “No counterfeit currency have been seized by agencies under CBEC (Central Board of Excise and Customs) since 8th November 2016 till 30th December 2016.”