Defence Minister Manohar Parrikar on Sunday said that due to Prime Minister Narendra Modi's demonetisation drive, the central government will earn Rs 2-3 lakh crore in taxes. According to him, one of the key aims of the currency ban was to strengthen the Indian economy and that decision has resulted in unearthing black money in hundreds of lakhs.
"A minimum of Rs 2 lakh to Rs 3 lakh crore in taxes will be collected and once this tax comes to the government, it will help fulfil the needs of the common people and the poor. The Central government will utilise the money to give financial strength to these sections," IANS quoted Parrikar as saying.
He further said, "Until now, Rs 700 to Rs 800 crore of black money was caught in currency notes. I do not have to say how many people who have deposited money in banks are going to be taxed."
Meanwhile, the Reserve Bank of India (RBI) has imposed restrictions on depositing more than Rs 5,000 in old currency notes (of Rs 500 and Rs 1000), thereby mandating that it can be deposited only once per account until December 30.
"It has been decided to place certain restrictions on deposits of SBNs into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016," RBI said in a notification.
The central bank has said that old notes in excess of Rs 5,000 will be received for credit only once during the remaining period till December 30, 2016. "The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation," the Times of India quoted a source as saying.
