The Taxation Laws (Second Amendment) Act, 2016, gave taxpayers the opportunity to surrender cash representing undisclosed incomes under the Pradhan Mantri Garib Kalyan Yojana . Aggrieved assessees will undoubtedly exercise their right of appeal before Appellate Commissioners and later the Income Tax Appellate Tribunal. The revenue at stake in these cases is Rs 2.45 lakh crore (85% of Rs 2.89 lakh crore). Simultaneously, consequent to demonetisation, existing taxpayers also began reporting higher current incomes.As a consequence, advance tax collections are running 41% higher than last year. Cash holdings today, points out the recently published Economic Survey, are Rs 3.5 lakh crore (or 20%) less than what they would have been had demonetisation not taken place.

Source: Economic Times November 04, 2017 18:30 UTC