An important step by govt to curb blackmoney: CBDT chief

The demonetization of Rs 500 and Rs 1,000 currency notes is a "very good step" to curb the menace of black money and will help check stashing of funds to a large extent, the CBDT chief, on Wednesday, said as the department prepares to keep an eye on any suspicious transaction.

"This is a very important step. This decision shows that the government has no tolerance for black money," Central Board of Direct Taxes Chairman Sushil Chandra told PTI. He said "at this moment", the announcement made by Prime Minister Narendra Modi in this regard last night will help in curbing the menace to a "large extent".

Chandra said the I-T department and the CBDT are working out modalities of the role that they will "specifically" play in the aftermath of the decision made wherein Rs 500 and Rs 1,000 currency notes are not a legal tender from Wednesday.

Sources in the department said the taxman would be keeping an eye on remittances made using the two currency notes, beyond a certain threshold. The department would work in close coordination with banks and the Financial Intelligence Unit to keep an eye on suspicious transactions resulting after the de-monetisation of the two big currencies, they said.