Taxman is watching! I-T notices to hundreds of firms, individuals

The IT notice sent mentioned the date and amount of cash deposits and it sought ‘supporting documents, books of accounts and bills to explain the said cash deposits.’ (HT Photo)
The Income Tax department has issued notices seeking ‘sources of income’ to hundreds of individuals and firms who have deposited huge amounts of cash in banks after the demonetisation move.
Officials said the department has initiated a country-wide enquiry under section 133 (6) of the Income Tax Act (power to call for information).
The notices were issued after banks reported ‘unusual or suspicious volumes of cash deposits’, most of them beyond Rs 2.5 lakh.

“The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspicious. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8,” officials said.
The IT notice sent mentioned the date and amount of cash deposits and it sought ‘supporting documents, books of accounts and bills to explain the said cash deposits.’
If the individual or entity were assessed for Income Tax, it asked for a copy of the Tax Returns from the last two years.
The department has also stepped up its survey operations against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money.
After demonetisation, the IT department has kept real estate players, bullion traders and suspected hawala operatives in check for illegal use of the scrapped currency.
The dept is also closely watching cooperative banks after it found out that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in Mangalore.
It has also issued many notices to hundreds of charitable and religious organisations to check on possible accommodation of black money through donations to these organisations.
Charitable and religious organisations were asked to report on their cash balances on November 8, the day PM Modi announced the demonetisation move.
Source - Hindustan times

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