Demonetisation after-effects: IT dept issues notice to suspected depositors

The Income Tax department issued notices to the suspected depositors who deposited huge amounts of money in the bank after the demonetisation announcement.It was learned that thousands of people deposited huge amounts of money in their bank account after the invalidation of higher denomination notes.Experts opined that those people who possess black money or unaccounted money are currently in a panic mood. They added that they do not have any other option. They further added that they can either surrender the money or ditch their unaccounted money.It was announced that the Income Tax department started a national wide operation.

According to the law, if the IT department finds any irregularity in the transactions, it can seek information from the suspects under Section 133 (6) of the IT law.The law enables the IT department to seek information from the people regarding their income and source, pointed out experts.Notably, if the IT department finds any mismatch in the documents presented by the depositors they may take away nearly ninety per cent of the deposited money as a penalty.Any kind of cash deposit above 2.5 lakh rupee may evoke suspicion and attract a notice seeking the source of income.The notice served to the suspected depositors sought account books, bills, and supporting documents. In some rare cases, the copies of income tax return of last two years were also demanded.Interestingly, a tight investigation and survey operation has also been initiated by the Income Tax department.The department is also expected to examine the real estate dealings, NGO operations and charitable and religious funds.

vignesh

Photo Courtesy : Google/ images are subject to copyright