At banks, income tax keeps watch for large deposits

The Financial Intelligence Unit-India will also compile reports on high-value transactions and disseminate these to various agencies.

Written by Khushboo Narayan | Mumbai | Published:November 10, 2016 2:29 am
 rs 500 ban, rs 1000 ban, rs 500 invalid, rs 10000 invalid, currency ban, black money, tax, tax on black money, demonoitisation, economy, paperless economy, indian express news, india news, latest news Sources said the department will take up cases for scrutiny in the next 50 days starting November 10.

The income tax department is set to scrutinise the annual information reporting (AIR) of entities and individuals who make high-value deposits to banks while exchanging old currency notes. Sources said the department will take up cases for scrutiny in the next 50 days starting November 10.

“Once a case is picked for scrutiny the department will call for information from the assesses and the onus will be on the assesses to show the source of the money and if it was disclosed to the income tax department. The disclosures are not exempt from action from agencies such as the service tax, sales tax, income tax,” said a source.

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Should an entity or individual fail to account for the money disclosed, they will have to pay 30 per cent tax on the undisclosed income.

The Financial Intelligence Unit-India will also compile reports on high-value transactions and disseminate these to various agencies.

Apart from PAN-reportable transactions, the scope of AIR extends to additional transactions such as cash withdrawals from accounts and credit card transactions.

Under the new AIR disclosure norms, it is mandatory to report cash withdrawals/deposits totalling Rs 50 lakh or more in a financial year from/in the accounts of a person or company, and deposits of Rs 10 lakh or more from the accounts (other than a current account and time deposit) of a person.

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  1. A
    ashok s
    Nov 10, 2016 at 12:29 am
    ume that a person sold a flat in Mumbai in ratio of 60 to 40 I.e 60% in white and 40 % in black and next he wants to buy a flat so he is in zinxed as builders after the demonetized act will not accept his black money. What shall this netizens do. Is their any escape route
    Reply
  2. A
    ashok s
    Nov 10, 2016 at 2:01 am
    Rather then eying banks ,as details will be available to I.t as when required why not they cut logistics links of builders and jewellers.
    Reply
  3. D
    dd
    Nov 10, 2016 at 4:08 pm
    ADHAR is linked to each account's ID. Don't worry. Let them deposit...They have to answer for above average balance or unexpected hike in balance...No one is immune.. Thanks Modi saheb...
    Reply
  4. V
    Vipul Jain
    Nov 10, 2016 at 3:06 am
    uming the transaction was in this financial year itself, declare the true value of the and you can still deposit the cash amount in bank as you would can mention the source of money deposited as proceeds. Of course, you would have capital gains tax liability however if you are buying another property, the capital gains can always be adjusted. Consult any capital gains tax expert.
    Reply
  5. I
    Intolerant Logic80
    Nov 10, 2016 at 9:05 am
    Feel sorry for you.
    Reply
  6. M
    manikantan
    Nov 10, 2016 at 7:50 am
    May be politicians distribute money with 100's of people and recover it later converting black into white.
    Reply
  7. M
    manish dhage
    Nov 24, 2016 at 8:58 am
    I really don't understand this....Big businessmen have deposited stashes of personal black money in Current and CC accounts on the pretext of cash in hand by making false bills false receipts and credits...the books are in their hands...the bigger the turnover of the firm the bigger the fraud...all this fraud can very easily be covered up by Apt Chartered accountants...these fraudsters are sitting pretty in their homes like kings whereas small businessesmen and commoners are rushing helter skelter to save their mediocre hard earned money like dogs....Is their justice in this Country?
    Reply
  8. R
    Rama Krishna
    Nov 10, 2016 at 5:11 am
    There is no escape route. Karma has caught up. Take the loss on the chin and next time dont cheat and get involved in shady deals to avoid tax.
    Reply
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