Demonetisation: I-T notices to those depositing huge cash, seeks ‘source’ of funds

They said the notices were issued after banks reported to it certain cases of "unusual or suspicious volumes of cash deposits" in their accounts, primarily beyond Rs 2.5 lakh.

By: PTI | New Delhi | Updated: November 19, 2016 9:39 pm
Income tax, demonetisation, IT notice demonetisation, IT notice black money, currency exchange, note exchange, old Rs 500 note, old Rs 1000 note, new Rs 2000 note, new Rs 500 note, narendra modi, BJP, black money, note ban Demonetisation: Officials said the taxman has begun a country-wide enquiry in this regard and has issued notices under section 133 (6) of the Income Tax Act (power to call for information) in various cities and towns of the country. Photo for representational purpose. (File Photo)

Acting swiftly, the Income Tax department has issued hundreds of notices seeking “source” of funds from individuals and firms who have deposited huge amounts of cash in banks using the scrapped Rs 500 and Rs 1000 currency notes after November 8. Officials said the taxman has begun a country-wide enquiry in this regard and has issued notices under section 133 (6) of the Income Tax Act (power to call for information) in various cities and towns of the country.

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They said the notices were issued after banks reported to it certain cases of “unusual or suspicious volumes of cash deposits” in their accounts, primarily beyond Rs 2.5 lakh. “The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8,” they said.

ALSO READ: Demonetisation: Take your medicine and like it even if the PM has ‘maxed the dosage’

The notices issued by the department cite the date and amount deposited by an entity in the old currency in the bank as it goes on to seek “supporting documents, books of accounts and bills to explain the said cash deposits” from them.

“If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,” an I-T department notice issued in this regard said. In the wake of the demonetisation declared by Prime Minister Narendra Modi on November 8, the department has also stepped up its survey operations against real estate players,
bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money.

ALSO READ: Banks may allow cash withdrawal for marriage from next week

The taxman has also deployed a similar check at cooperative banks and in one case in Mangalore it found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank there. The department has also recently issued notices to hundreds of charitable and religious organisations in the country enjoying exemptions on tax paid to inform it about their cash balances as of November 8 when the government demonetised Rs 500 and Rs 1,000 currency notes.

The notices were issued in order to keep a check on possible “accommodation” of black money in old currency by way of making charitable contributions or donations to these organisations.

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First Published on: November 19, 2016 5:10 pm
  1. B
    Bramha
    Nov 20, 2016 at 1:47 am
    @Mannu is absolutely correct. PMs' one little head cannot conceive of the humongous logistics involved. This dictum is coming from outside Bharat to ensnare and control 1.3billion ppl and make it case in point in all countries to push the new "cashless" financial tools industry (its collossal and mighty). And Cong is also under this dictum and hence they are quiet.lt;br/gt;lt;br/gt;@Mr gullible "suppusamy", there is no patriotism nor honesty in nasty capitalisms intent for world domination. OPEN YOUR EYES, EARS, MIND before you find yourself and the rest 1.3bil-1 in a glittering prison cell.
    Reply
    1. J
      Jiho Junket
      Nov 19, 2016 at 10:07 pm
      Tell me the great sufferring you endured due to this. Please say how much of your cash is affected and why you simply deposit it in your bank account?
      Reply
      1. S
        Satendra kumar
        Nov 19, 2016 at 10:36 pm
        The central government tax department made thier target the amount set target of funds and beyond will make enquiry the avilability of such funds and all taxation dues.
        Reply
        1. N
          Nomorecrap
          Nov 19, 2016 at 3:15 pm
          If you new the truth then you wouldn't feel like a fool. Corrupt are going to gain the most from demobilisation. Wait and watch.
          Reply
          1. K
            kifi
            Nov 19, 2016 at 1:35 pm
            this is just game changer .all it department is corrupt all what they have to do bribe it officer who in Inida is not corrupt people be realistic
            Reply
            1. A
              aks
              Nov 19, 2016 at 3:02 pm
              This is the way to go. All the might to the govt.
              Reply
              1. I
                Indian
                Nov 19, 2016 at 5:08 pm
                WELL DONE - Crooks are now under supervision. They done whatever they likes up till now. No Income Tax - Nothing NOW................................ must be ............
                Reply
                1. A
                  Arvind
                  Nov 19, 2016 at 9:07 pm
                  Nothing wrong in issuing IT authority issues notices.If U Have white money then there is no worry only problem with those who have black moneys. Because of black moneys there was Parallel economy which used to destroy our progress and poverty of poor people remained unchanged for years together.Let us hope there is a sea change in our economy after Demonetizationmon Man need not to worry as he/she has only white moneys.
                  Reply
                  1. A
                    ashok s
                    Nov 19, 2016 at 11:58 am
                    When builders are allowed to accept old notes is I T again playing game with commoners. I tell sleuths go raid books and premises of ostwal builders in Mira road .check
                    Reply
                    1. D
                      Dash
                      Nov 19, 2016 at 2:36 pm
                      A good beginning has been made. Let these corrupt selfish Khujlis,Bombtas,dynast Pappu Udhavs scream. More action will follow. A clean economy is needed for a better India. Jihadis,naxals,hawala dealers,drug peddlers,of course other antinationals like many politcians,terror smpathizers have bee severely hit. This is a defining moment for the nation
                      Reply
                      1. D
                        Dash
                        Nov 19, 2016 at 12:32 pm
                        The game has just begun. The dream of a better Ibdia will be a reality. Persons who believe in hardwork and honesty will be rewardwed and selfish,corrupt andantinationals will be punished.
                        Reply
                        1. B
                          Bandouphaday
                          Nov 20, 2016 at 12:02 am
                          Your purported action or wish speaks volume of your heinous design and treacherous nature. Over 40% of big notes were brought in by your friendly country stan via Mamata Banerjee's traitors living in West Bengal and Nepal. 95% of money used in elections by regional political parties operating in UP (SP, BSP) and Bihar (of Yadav parties, who are an insult to the Yadav vansha) and of course our chirping bird Kejriwal, whose dream of fooling the voters of Punjab has got a setback on demonetisation. It is suddenly drained of crores of rupees. Shame on anybody who is an enemy of India, lives in India but works for ISI and Maoists
                          Reply
                          1. L
                            Lecky
                            Nov 19, 2016 at 12:19 pm
                            True in a sense
                            Reply
                            1. C
                              claire smith
                              Nov 19, 2016 at 3:37 pm
                              media in india is too scared to report real problems facing the economylt;br/gt;lt;br/gt;modi moving India to "more government and less governance"lt;br/gt;lt;br/gt;a new robin hood who claims to get from rich and ship to poor
                              Reply
                              1. K
                                Kumar
                                Nov 19, 2016 at 10:18 pm
                                Just one suggestion. For those Jan dhan inflows which are not explained, even if they are less than 2.5 lakhs, if the Government could freeze them as FDs, say for 3 years, the sources will dry up at least and secondly, the banks will have more money to work with..
                                Reply
                                1. D
                                  dabangghindu
                                  Nov 19, 2016 at 4:41 pm
                                  133(6) notices were issued prior to demonetisation process.Now all anti modi forces started to show old notices as new one by maniting dates and photoshop the address.Press Commission should take note of such blatant violation by media.
                                  Reply
                                  1. D
                                    dd
                                    Nov 20, 2016 at 3:46 am
                                    All problems and troubles are in opposition govern states.. People needs to wake up , trust Mr. Modi for better India.
                                    Reply
                                    1. D
                                      Dinesh
                                      Nov 20, 2016 at 12:55 am
                                      Modi has made it clear that Demonetisation and currency ban does not include Political parties collecting 80 percent of Election money from undisclosed sources and Rich elites and corporates. Modi Government going after common man only.
                                      Reply
                                      1. J
                                        jagats
                                        Nov 19, 2016 at 5:40 pm
                                        Hope all the troubles undergone by crores of people are worth it.
                                        Reply
                                        1. A
                                          Amit
                                          Nov 19, 2016 at 12:55 pm
                                          Anyone who hasn't paid taxes for any xyz reasons are crying and rest of the countrymen knows that it's good for country despite of current difficulties.
                                          Reply
                                          1. A
                                            Amit
                                            Nov 19, 2016 at 12:46 pm
                                            Excellent work by government
                                            Reply
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