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The demonetization has brought many changes in the economy and impacts the Indianeconomy and especially the issues for which it has been undertaken by the Government Of India. 1.) BLACK MONEY – The government has estimated that around Rs.5 lakh crore would be removed from circulation permanently. But, according to RBI report for the year 2017-2018, more than 97% of Rs.500 and Rs.1000 banknotes i.e. around 15, 311 lakh crore out of 15, 418 lakh crore   have been recovered and deposited with the banks. Only a little amount of banknotes have not been recovered and deposited with the banks. 2.) TAX COMPLIANT SOCIETY – There is an increase in direct tax collection by 25% i.e. around 12 lakh crore in year 2017-2018 as compared to previous year 2016-2017 from 9 lakh crore. INCOME TAX FILINGS Year Filing Of Income Tax Return New Return Filers Corporate Returns 2015-2016 4.7 cr 66.2 L 7.5 L 2016-2017 5.5 cr ...

The demonetization was announced on 8 th November, 2016. When demonetization was announced, there was not much information available to the public. It was sudden and unexpected. The new currency notes are quite different in terms of its size, colour, looks and design. The plan of demonetization was started in February, 2016. The RBI had presented to Government an analytical notes about the merits and demerits of this idea, the impact, challenges, consequences associated with it and alternatives ideas and necessary preparation for its implementation. There were several rounds were conducted on ideas, pros and cons etc, again and again regarding this move and regarding its implementation. In may 2016, the Reserve Bank Of India has started the printing of new currency notes and confirmed the design of Rs.2000 banknotes in August, 2016. The new banknotes were started printing in October, 2016. RBI has spent around Rs.3,500 crore to print new banknotes in 2016-2017 ( July to J...

REASONS FOR DEMONETIZATION IN INDIA(2016)   There are major four reasons due to which the Government Of India had announced Demonetization in 2016, ·         *  BLACK MONEY ·        *   NON TAX COMPLIANT SOCIETY ·        *  COUNTERFEIT CURRENCY ·        *  TERROR FUNDING 1.) BLACK MONEY - The main motive for demonetization was to curb black money in India i.e. income which had not been reported and untaxed, or income earned through illegal activities, corruption etc.  So, there was around Rs. 15,418 lakh crore banknotes in India, of which the Government Of India were aimed to replace them with new currency notes and curb black money. 2.) NON TAX COMPLIANT SOCIETY – The non tax compliance is range of activities that are illegal and unfavorable and  unethical in the eyes of law and to government’s tax system. This includes tax evasion and som...