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CBDT Issues Notices For Improperly Accounted High Deposits

India’s Income Tax Department has swung into action issuing over 3,000 notices to those assesses who have deposited improperly accounted-for sums in their bank accounts after the recent demonetization of Rs. 500 and Rs. 1000 currency notes.

The Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said that since the day that demonetization came into effect it had become aware of several people trying to convert their black money into white via bank deposits.

In a statement, Sushil Chandra said

After the demonetization, we collected information almost on a real time basis. Based on information screening we have conducted search and seizures in about 291 cases. We have carried out surveys in 295 cases. We have also issued around 3,000 notices on the basis of deposits in bank accounts

The IT department has carried our several raids across the country seizing cash and jewelry worth Rs. 393 crore. The seized cash of Rs. 316 crore had contained over Rs. 80 crore in new notes. The jewellery seized amounted to Rs.76 crore. The overall admitted income covered under these surveys was Rs. 2,600 crore.

India Today

Typically several routes have been used to convert black money such as using cash to buy jewellery and bullion, back dating cash transitions or bank deposits, depositing cash in multiple accounts under the Rs. 2.50 lakh limit, using shell companies, illegally depositing into Jan Dhan accounts and repaying loans using cash.

Chandra said that the department was collecting all relevant data and mapping it against existing information. He stated that analysis was being carried out to establish whether money being deposited had appropriate accounting. Adding that the assesses’ accounts were being closely watched, Chandra emphasized that people should take advantage of the recently-launched income disclosure scheme to come clean.

According to Revenue Secretary Hasmukh Adhia, all banks would be collecting PAN numbers for all accounts except the Jan Dhan accounts in a month’s time. He pointed out that in the past weeks the CBI had identified and filed 12 cases of unlawful conversion of cash while the ED had filed 17 cases of money laundering.

According to RBI reports, around Rs. 12.44 lakh crore worth of the banned currency notes have been deposited by citizens till December 10. According to official estimates, the total value of the banned high denomination notes in circulation is around Rs. 15.44 lakh.

People across the country have been returning the scrapped notes with them ever since they were demonetized overnight in a surprise announcement on Nov. 8.

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