I-T department conducts surveys in Delhi, Mumbai, others after demonetisation

The Income Tax department conducted multiple surveys in Delhi, Mumbai and other cities.

By: Express Web Desk | New Delhi | Updated: November 10, 2016 8:51 pm
IDS, income decleration scheme, disclosure, income disclosured, unaccounted income, unaccounted wealth, income tax department, india news, indian express Income Tax Department Building. (Express photo by Vasant Prabhu)

The Income Tax (I-T) department on Thursday conducted multiple surveys in Delhi, Mumbai and other cities in the wake of demonetisation of currency. The department had been keeping a close watch on large deposits in banks. Till reports came in, similar survey operations by I-T authorities are also understood to have been launched in two
south Indian cities. Sources said the department had received “actionable inputs” that some traders, jewellers, currency exchanges and hawala dealers were allegedly exploiting the recent currency demonetisation of Rs 500 and Rs 1,000 notes and were changing currencies at “discounted” prices, thereby profiteering illegally.

As reported by The Indian Express earlier, the income tax department will 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.

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“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.

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.

Prime Minister, Narendra Modi, in a televised address to the nation on November 8, had declared that high denomination notes of Rs 500 and Rs 1000 will not be legal tender from November 8 midnight. He had said that the Government has declared a “decisive” war against black money and corruption.

The government has allowed citizens to deposit in their bank accounts old currency of Rs 500 and Rs 1,000, which has been declared invalid in the country’s biggest crackdown on black money, corruption and counterfeit notes, between November 10 and December 30.