New Delhi | Jagran Business Desk: On the fourth anniversary of demonetisation, Prime Minister Narendra Modi on defended his government's move and said that it "helped reduce black money, increase tax compliance and formalisation" in the country.

In a tweet, PM Modi, who on November 8, 2016, announced the decision to ban all currency notes of higher denomination of Rs 500 and Rs 1,000 from midnight, said that the outcome of demonetisation has been "greatly beneficial towards national progress".

Along with his tweet, PM Modi used the hashtag 'DeMolishingCorruption' and shared a graphic on how demonetisation has ensured better tax compliance, improved tax and GDP ratio, made India a lesser cash-based economy and gave a boost to national security.

In his tweet, PM Modi said that self-assessment tax of more than Rs 13,000 crore was paid by targeted non-filers and 3.04 lakh persons who deposited cash of Rs 10 lakh or more but had not filed their income tax returns were identified.

The move also helped reduce terrorism in India, said PM Modi, noting that a large number of counterfeit notes were unearthed via demonetisation.

Earlier in the day, Finance Minister Nirmala Sitharaman also echoed PM Modi's thought and highlighted how note ban helped the country. In a series of tweet, Sitharaman underlined the merits of demonetisation and said that it "led to better tax compliance and a major push towards digital economy".

She further said that the move brought "transparency and widened the tax base", adding that over Rs 900 crore were seized after four months of demonetisation. Sitharaman also said that the move has formalised the economy.

"To fulfill its promise of freeing India from corruption, the Modi govt implemented Demonetisation 4 years ago on this day, today. The move that was an unprecedented attack on Black Money also led to better tax compliance and a major push to digital economy," she had tweeted.

Meanwhile, former Congress President Rahul attacked the Modi government on the fourth anniversary of demonetisation. In a tweet, Gandhi alleged that note ban was aimed "at helping a few of his "crony capitalist friends and had destroyed the Indian economy".

"The government says that the reason is COVID but if that is the reason, there is COVID in Bangladesh and elsewhere in the world also. The reason is not COVID, the reason is 'Notebandi' and GST," Gandhi said.

"This was a lie. The attack was on you, Modi wanted to take your money and give it to his 2-3 crony capitalist friends. You stood in lines, not his crony capitalist friends. You put your money in banks and PM Modi gave that money to his friends and gave them a loan waiver of Rs 3,50,000 crore," Gandhi alleged.

PM Modi had on November 8, 2016, had announced the decision to ban all currency notes of higher denomination of Rs 500 and Rs 1,000 from midnight. The government then claimed that the move was aimed at reducing black money in the country.

Posted By: Aalok Sensharma