In one of the other after effects of demonetisation, the Income Tax department is reported to be sending warning letters who did not respond to queries on deposits made during the note ban.
In one of the other after effects of demonetisation, the Income Tax department is reported to be sending warning letters who did not respond to queries on deposits made during the note ban. Reports state that the I-T department is to send non- statutory letters to the depositors who did not respond to SMS, e-mail queries sent by the Income Tax department on the questions about the deposits made by them. It was also reported that more than 7 lakh responded to the queries that were raised through SMS, e-mail on the bank deposits that were made post demonetisation. The I-T department said that more than 99% of the 7 lakh respondents accepted that the data deposits were correct.
According to the RBI, Rs 12 lakh crores had been deposited in banks by December 10. However, other reports suggested that by December 30, demonetised notes worth Rs 15.44 lakh crore could have been deposited in the banks. It was also reported that 60 lakhs bank accounts alone received about ₹7 lakh crore out of a total of 50 crore bank accounts. The government had announced the demonetisation scheme to curb down the flow of black money in the country.
On November 8, 2016, Prime Minister Narendra Modi had announced the demonetisation drive by banning the use of high denomination currency notes in the country. The aim was to tackle the hundreds of crores of black and untaxed money stashed by corrupt in the country. During the 50 day period of demonetisation, the ED and the CBI had conducted raids all over the country and had recovered crores of money and assets in jewellery among other things. Meanwhile, it was also reported that crores of untaxed money had found its way to banks under fake accounts, creating a massive uproar in the media.