According to Income Tax department there is more awareness among residents of Mumbai about how to manage their money effectively.
After demonetisation the Income Tax department has carried out 586 raids across the country and has seized more than 300 crores in cash, 79 crores in denomination of new currency note of Rs 2,000 and undisclosed amount worth Rs 2,600. However Mumbai accounted for only 10 per cent of the total amount seized from the across the country despite the city being known as the financial capital of the country. Maximum amount was seized from Tamil Nadu, Delhi, Pune and Bangalore. Income Tax department is surprised that no major seizure of cash has happened in the city even though it is home to large number of millionaires in the country. According to an official from IT department residents of Mumbai are financial savvy and know how to manage their money efficiently.
“There is more awareness among residents of Mumbai about how to manage their money. Many people are investing money in shares, mutual funds, bonds. Most of them pay taxes regularly and also are aware about the exemptions available for them as per Income Tax act,” said an Income Tax official on the condition of anonymity.
“Even though Mumbaikars don’t have enough time to spend with their families they take some time out from their busy schedule to interact with financial planners for managing their money. They are well aware about the various investment plans available for them. Most of them are tech savvy and have been carrying out online transactions much before the Modi government had appealed to people for going cashless,” said a financial planner from Kandivali.
“Since large number of women is working in the city they are independently managing their wealth without any family intervention. They invest in financial products and other tax saving schemes. Many of them have purchased gold for disposing the old currency notes. Some people have invested in real estate while some others are indulging in charitable activities to avail tax exemptions,” said Abhijeet Singh a finance manager working with a brokerage firm in Andheri.
As per Knight Frank’s Wealth Report-2016 highest number of ultra-high-net-worth individuals reside in Mumbai followed by Delhi. According to New World Wealth report 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.
So far the India’s Income Tax Department has issued 3,000 notices on the basis of their analysis of deposits made since demonetisation was announced last month.
As per a survey major modes of moneylending included using cash for purchase of bullion and jewellery, backdated receipts for transactions, and deposits made in shell companies.