The Income Tax (I-T) department has traced several multi-crore transactions people made in Indore region, after the Centre announced demonetisation of Rs 500 and Rs 1,000 bank notes on November 8.
Vinod Kumar Mathur, chief I-T commissioner, Indore region, said on Friday that the department’s investigation wing has collected details of 500 Jan Dhan accounts, which have received deposits of more than Rs 100 crore.
Similarly, it has collected data of 300 people, who deposited crores of rupees in 60 co-operative banks and co-operative credit societies of Indore region, which includes 15 districts of Indore and Ujjain divisions. A majority of depositors are PAN (permanent account number) holders.
In addition, it has collected sale details from petrol pumps, dealers of high-end luxury products like automobiles and watches, among other goods. “All these details are under scrutiny,” Mathur told newspersons.
According to him, the department has gathered additional information about 350 transactions, in which more than Rs 1 crore were deposited post demonetisation declaration. Similarly, it has information of about 768 transactions, where people deposited more than Rs 10 lakh.
Of these total transactions traced, 50% are made by individuals and 50% by business establishments. The I-T investigation wing has been strengthened, as more staff has been deployed to investigate and gather information about unaccounted money, the official said.
The I-T officials reiterated on Friday that demonetisation is not a scheme to convert unaccounted money into an accounted sum. “People are answerable for every penny they deposit in the bank, if the explanation is called for. Demonetisation should not be misunderstood as a scheme to launder one’s black money,” Mathur said.
Acting on Centre’s directives, the department has begun digging into the collected details of financial transactions to trace tax evasion, money laundering and hawala transactions in Indore region. The department’s move is part of ongoing nation-wide government exercise to crack down on grey money.
Centre offers second chance to come clean
The income declared under Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana will not be included in the declarant’s total income under Income Tax (I-T) Act for any assessment year, I-T department said on Friday.
“Nor will this declaration be admissible as evidence under Central Excise Act, Wealth Tax Act and Companies Act,” said Vinod Kumar Mathur, chief commissioner of I-T, at a press meet. “We, therefore, appeal to people to avail this scheme and come clean on their unaccounted income,” Mathur said.
As per the scheme, a declarant can deposit his/her unaccounted income in the form of cash or deposit made through other means (cheques, online transfer etc) in an account with bank, post office or entities specified in the scheme. The declarant will have to pay 30% tax of total deposit, surcharge of 33% and penalty of 10%. “Any non-declaration of undisclosed cash or deposit will be liable for tax, surcharge and cess totalling upto 77.25%,” Mathur said.
The scheme, which came into force on December 15 and will end on March 31, 2017, is a second opportunity provided to people to declare unaccounted income.
Meanwhile, I-T Indore region, which includes 15 districts of Indore and Ujjain division and Rajgarh district of Bhopal division, has received 90 applications for settlement of tax disputes worth ₹75.18 lakh so far under Direct Tax Dispute Resolution Scheme 2016, which ends on December 31.
Of the total 90, the department settled 36 disputed tax cases and collected ₹8.26 lakh. Ujjain area received maximum of 40 applications, of which 29 were decided and ₹3.62 lakh were recovered in process. There are 3,000 tax dispute appeals pending before department in Indore region.