Deposited over Rs 2 lakh after demonetisation? You may get multiple tax notices
People who deposited huge amounts of cash in their bank accounts after the Centre’s demonetisation exercise may get multiple notices from the Income Tax department through the rest of the year.black money crackdown Updated: Jan 23, 2017 01:36 IST
People who deposited huge amounts of cash in their bank accounts after the Centre’s demonetisation exercise may get multiple notices from the Income Tax department through the rest of the year.
The department – which has started sending notices to those who deposited currency over Rs 2 lakh after November 9 – directed its officials to ensure that “genuine” cases are dissolved at the earliest. Probes would then be undertaken against those found to have “fuzzy” sources of income. The mammoth exercise could go on till the next financial year, sources said.
The first set of notices from the department will be sent out by the end of the financial year. Based on the response, taxmen will decide if they should conduct further investigation into the case. Several banks — public as well as private — will also receive queries about suspicious transactions.
“While the tax department aims to send out all the notices by March, the next sets of queries will depend on their response. It could even vary from person to person,” a senior government official told Hindustan Times on the condition of anonymity.
Sources said the income tax department was also in a hurry to resolve cases that were pending before the demonetisation drive was launched.
By using risk-based data analytics of cash deposits in bank accounts to distinguish between genuine and not genuine cases, the tax department has become capable of targeting even entry-level operators. The department also said cash-withdrawal restrictions have helped them follow the trail of transactions carried out by those with unknown sources of income.