The Indian government’s goal of removing black
money from being in circulation will require the application of
the country’s income tax laws, as there is no
clarity between tax-exempted and illicit cash.
Latest reports have shown that nearly 14 lakh crore ($217
billion) worth of now invalid 500 and 1,000 rupee notes, or 72%
of cash previously in circulation, has been deposited with
banks. But not all the banknotes deposited back into the system
are illicit cash as this is something that needs to be
determined by the government.
"Whether it is black money or money earned by people from
legitimate sources will take some more time to assess," said
Kumar Saurabh Singh, partner at Khaitan & Co...