New Delhi: 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.
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.This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money,” they said.
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.
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.PTI
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