Tightening the noose on black money holders, Income Tax Department and Enforcement Directorate are reportedly investigating the farmers’ account with huge cash deposits and people who have suddenly started investing mammoth amount in gold. Both agencies are learned to be closely monitoring such accounts. It should be noted that agricultural income in India is non-taxable, while investing in gold is an easy way out for the people hoarding big amount of black money. Gold rates took an unprecedented surge following the announcement of demonetisation of Rs 1000 and Rs 500 currency notes last Tuesday. Initiating a big drive to curb black money, IT has already launched country-wide raids. Recently, the offices of producers of ‘Baahubai’ were raided, the biggest ever business-grosser in southern cinema industry.
Gold was sold for a rate as high Rs 52,000 per/10 gm. Prime Minister Narendra Modi, in a televised address last Tuesday, declared Rs 500 and Rs 1000 notes as illegal tenders. The PM declared a ‘decisive war’ with corruption in his address. The move has taken the nation by storm. Long queue of people gathering outside banks to deposit/exchange their currency have seen in the entire nation. The move has received mixed reactions from general public, while most of the political parties have opposed it in its entirity. People have been given a time of 50 days, i.e from November 10 to December 30th to deposit their existing Rs 500 and Rs 1000 notes in banks.