Demonetisation announced on November 8, 2016, left a lasting effect on Indian economy including personal finance of individuals. As an aftermath of the cash ban, the income tax department witnessed record-breaking tax returns and banks also saw cash deposits like never before. 

 

According to a recent report by a leading daily, a man in Tamil Nadu’s Namakkal district deposited a whopping ₹246 crore in one of the rural branches of Indian Overseas Bank. The bank is following the individual for more than 15 days since the deposit, the Times of India quoted a bank official as saying. 

 

Though initially, he tried to go into hiding but later he agreed to avail the Pradhan Mantri Garib Kalyan Yojana (PMGKY), and he will be paying 45 percent tax on the total amount. Also, the government will retain another 25 percent of the amount without interest. 

 

The man from Tiruchengode made the deposit in old demonetised notes. The same report also stated that other individuals and companies have also deposited cash and accepted that the money is unaccounted for income. The bank official told TOI that they are hoping that the amount of unaccounted money may reach ₹1000 crore before the end of the PMGKY scheme on March 31. 

 

Post demonetisation, in Tamil Nadu and Puducherry alone 28,000 bank accounts have been found to be suspicious, and in some of these accounts the deposit in cash have been ₹85 lakh and more, the report quoted the official as confirming. 

 

Interestingly, above 200 individuals and companies deposited about ₹600 crore unaccounted for income in different banks in Tamil Nadu and Puducherry since cash ban.