Mumbai is ‘financially smart’ to manage black money, say Income Tax officials

Income Tax guys are disappointed as they have not caught the big Mumbai based fishes in IT raids across the country:

In March this year, Knight Frank’s Wealth Report-2016 said Mumbai has the maximum number of ultra-high-net worth individuals in India, followed by Delhi. Subsequently, in September this year, New World Wealth in its report said, the financial capital Mumbai homes to 45,000 millionaires and 28 billionaires is the wealthiest city in the country with total wealth of USD 820 billion, followed by Delhi and Bengaluru.

Now, consider this. Data released by Income Tax (IT) Department reveals that it has netted about Rs 300 crore in cash with Rs 79 crore in new currency notes and an unaccounted income of almost Rs 3,000 crore since announcement of demonetisation.

But, despite being the richest city in India, Mumbai registered hardly 10 per cent of the total cash seizures in last 37 days. 

Speaking to Indiatoday.in, the IT officials in Mumbai said that they were perplexed to see that no big seizure of cash had been made from the city. “It is shocking for the department, the big cash seizures should have happened in Mumbai, but that is not happening”, a senior IT official said.

However, it’s too early to conclude but the department is less satisfied with local tip-offs. Not openly, but the department has blamed the police for such a result saying “why we should bother attitude” among the policemen is killing the demonetisation action-plan.

Another major factor is the financial literacy in Mumbai is quite high. Taxmen believe that people are financially knowledgeable, well-aware and smart enough to handle and manage the black money.

“Forget the corporate companies and traders in this city, even the common man knows various routes through which the black money could be converted into white – either via hawala, commission-based agents or using stock market tools”, an IT department official said.

 I don’t know why officials think they are smartest of the lot on money matters!!
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