• Rajini T V

Abstract: Demonetization is a process through which the currency of a country is declared null and void and is replaced by the new currency. In India demonetization has been introduced three times. But most recent instance has affected majority of the people in India. The objective of this process as stated in the notification authorizing demonetization was to restrict terrorist activities in the country which were being funded by antisocial elements through fake currency notes. In the beginning the people were supporting this activity but later on while facing the consequences of unplanned activity; public at large opposed it and even number of petitions were filed in the High Court and Supreme Court challenging validity of demonetization. But the important point to be considered here is that all black money is not in cash. Rather it is being converted into other forms such as precious metals and property. The government should make effective policy to broaden tax base and provide adequate relief to the tax payers. The provisions relating to application of capital gain tax must be revised and checks in the system must be included to eliminate occurrence of black money at different stages.

Keywords: Demonetization, Black money, Capital gain, Income Tax

"DEMONETIZATION AND CAPITAL GAIN TAX: A STUDY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 5, page no.135-139, May-2018, Available :http://www.jetir.org/papers/JETIR1805A23.pdf

"DEMONETIZATION AND CAPITAL GAIN TAX: A STUDY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 5, page no. pp135-139, May-2018, Available at : http://www.jetir.org/papers/JETIR1805A23.pdf