Demonetization period Cash deposition Statistics – Average cash deposited by different tax payers   

Taxpayer Segment Analysis

This section contains breakup of reported cash deposits for various taxpayer segments. Table 1 provides percentage of ‘distribution of PANs and ‘total cash deposit’ across taxpayers segments. Further, the table provides average reported cash deposits per PAN for taxpayer segments.

 

Tax Payer Segment

PANs

Cash Deposits

Average Deposit per PAN (in Rs lakh)

Business

Proprietor (ITR 4S)

14.7%

6.1%

4.9

Proprietor

26.6%

35.4%

15.9

Non-Corporate

4.1%

14.4%

42.3

Corporate

2.0%

22.6%

137.4

Non-Business

Salaried person

6.7%

2.4%

4.3

Partners

1.6%

1.3%

9.6

Other Individual/ HUF

7.8%

2.8%

4.3

Others

Non-Profit Organization

0.5%

1.8%

44.4

Government

0.1%

0.7%

161.5

No Return Filed

36.1%

12.5%

4.1

                                       100.0%

100.0%

11.9

           

 

Salient Features

 Corporates which account for 2% of the reported PAN have a share of 22.6% in the reported cash transactions.

 Proprietors (individual running business) have a share of 41.5% in the reported cash transactions.

 Taxpayers doing business have a share of 78.4% in the reported cash transactions.

 36.1% of the PAN holders in the reported cash transactions have not filed return.

 

Business Segment Analysis

This section contains breakup of reported cash deposits relating to business for various business segments (as mentioned in ITR by taxpayers). The following table provides percentage of ‘distribution of PANs and ‘total cash deposit’ across nature of business. Further, the table provides average cash deposits per PAN by nature of business

 

Nature of Business

PANs

Cash Deposits

Average Deposit per PAN (in Rs lakh)

Trading

53.4%

60.8%

22.5

Manufacturing Industry

8.6%

11.6%

26.6

Service Sector

13.1%

9.9%

15.0

Financial Service Sector

1.3%

6.2%

94.6

Contractors

7.2%

3.0%

8.1

Professionals

6.7%

2.5%

7.5

Commission Agents

3.9%

1.8%

9.1

Builders

1.2%

1.5%

24.6

Entertainment Industry

0.4%

0.3%

15.4

Others

3.9%

2.4%

12.4

Not available (Blank)

0.4%

0.1%

4.8

                                  100.0%

100.0%

19.8

           

 

 

Salient Features

 Traders have the largest share (around 61%)in the reported cash transactions relating to business.

 Manufacturers have a share of 12% in the reported cash transactions relating to business.

 

 

Operation Clean Money Thematic Report

#1 Taxpayer Segment Analysis

 

Objective

Provide an overview of share of cash deposits (during the period 9thNov to 30thDec 2016) for various taxpayer and business segments.

 

Methodology

1. Account level deposit information from banks and post offices was aggregated for the PAN.

2. The reported cash transactions of banks were removed to avoid double counting.

3. PAN holder was classified in broad taxpayer segment as under:

 

 

Proprietor (Small)

Individual filing return in ITR 4S/Sugam

Proprietor

Individual filing return in ITR 4

Non-Corporate

Non-Corporate having business income (ITR 5)

Corporate

Corporate having business income (ITR6)

Salaried person

Individual having salary income > 50% of Total Income

Partner

Individual filing return in ITR 3

Other Individual/ HUF

Individual/HUF not in above categories

Non-Profit Organization

Entity filing return in ITR7

Government

G(Government) or L (local authority) in PAN Database

No return

PAN with no return available

 

 

4. PAN holders doing business were classified on the basis of nature of business mentioned in the last available return.

 

Limitations

1. Analysis is based on only reported cash transactions (not all cash transactions).

2. Reported cash transactions include both old and new currency deposited during the period.

3. Account level information without valid PAN has been excluded from this analysis.

4. Analysis is based on return available in systems (some returns may not be captured or verified).

5. Taxpayer segment classification based on return data may not be accurate.

6. The analysis may change on receipt of additional information.

7. Reported cash transactions may contain wrong PAN or amounts which may be revised later.

8. If taxpayer is engaged in more than one nature of business, only the first business was considered for analysis.

 

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