Prime Minister Narendra Modi’s note ban caught many black money hoarders off guard, who were forced to deposit the unaccounted money in banks and now pay a hefty tax. “The tax from just black money deposited in banks will easily surpass Rs 8,000 crore,” a senior official said requesting anonymity. During the same period last year, income tax collections were up just 11.3% while the growth was 8.4% in 2014-15. Read moreOn November 8, Modi announced scrapping of Rs 500 and Rs 1,000 notes as part of the combat against the menace of black money, corruption and terror funding. The punitive tax on black money was 75% in the first scheme that ended in September.

Source: Hindustan Times March 18, 2017 12:45 UTC