I-T to assess 80k big cash depositors during demonetisation

  1. The income tax department has ordered ‘best judgement’ assessment of over 80,000 taxpayers who had deposited significant amounts of cash during the demonetisation period but failed to respond to initial notices sent by the income tax (I-T) department and furnish their tax returns for the financial year 2016-17.
  2. In other words, the I-T officer is authorised to assesses the total income of such taxpayers to the best of his judgement.
  3. Demonetization is the act of stripping a currency unit of its status as legal tender.In 2016,the Indian government decided to demonetize the 500 and 1000 rupee notes, the two biggest denominations in its currency system.
  4. The objectives of Demonetization were (a)To fight black money and corruption in the country by preventing hoarding of cash (b)To fight terrorism by cutting off funding in cash and (c)To prevent counterfeiting of currency notes.Other objectives like transition toward a less-cash economy or push for digital transaction were added later by the Government.