After cracking down on jewellers and money exchangers, the income tax department is now training its lens on real estate companies for old currency related malpractices.
Top sources in the tax department say that ‘surveys’ were conducted in real estate companies in the Delhi-NCR region.
“We are keeping a close watch on illegal use of old currency, after 500 and 1,000 rupee notes were demonetised,” revenue secretary, Hasmukh Adhia had earlier told Hindustan Times.
Sources in the tax department said that notices have also been sent to religious organisations and charities to declare unusual surge in cash deposits since the demonetisation drill.
Charities and religious organisations, registered as trusts, are exempt from paying income tax.
“The apprehension is that people with black money, unable to exchange them at banks for new currency would have dumped them at charities or places of worship,” said a source in the government, who did not wish to be named.
In a surprise announcement on November 8, Prime Minister Narendra Modi had demonetised 500 and 1,000 rupee notes. Following the move, the government has issued several guidelines on bank withdrawals and deposits to maintain currency stability and stub out black money.
In the past week over 600 jewellers and 100 money exchangers were sent notices by tax authorities to check illegal use of old currency.
“Real estate, construction, trading among other sectors have always seen high generation and use of black money,” explained an official in the tax department, who did not wish to be named.