Cash is back

Rising currency, slowing digital transactions raise questions

A day after launching the goods and services tax regime, Prime Minister Narendra Modi reasserted his government’s commitment to curbing black income and tax evasion. This time he was addressing a huge gathering of chartered accountants, whom he urged to “safeguard society’s economic health”. The PM alluded to the role CAs played after demonetisation was announced and he warned that the government had zeroed in on over 300,000 companies which were found to have indulged in dubious transactions. He also announced that the government had deregistered 100,000 such firms and was probing more than 37,000 shell companies which were involved