Stuffed your bank account with old notes? Wait for the taxmans notice very soon

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 1000- and 500-rupee notes after November 8.

Officials said the tax authorities have issued notices under section 133 (6) of the Income Tax Act (power to call for information) in various cities and towns.

They said the notices were issued after banks reported 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 are 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.

The notices, citing the date of deposit and amount deposited, seek supporting documents, books of accounts and bills.

”If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,” one such notice reads.

The department has also stepped up its survey operations against real estate players, bullion traders and suspected hawala operators to check the illegal use of the scrapped currency and subsequent generation of black money.

Following similar checks at cooperative banks, it was found that old currency worth Rs 8 crore was exchanged by five societies that had accounts with one such bank in Mangalore.

The department had earlier issued notices to hundreds of charitable and religious organisations seeking details of their cash balances as of November 8, when the government demonetised Rs 500 and Rs 1,000 currency notes.

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


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