Demonetisation: Deposited More Than Rs.2.5 Lakh Cash? Then Await Income Tax Notice Soon!

As expected, the Income Tax Department has swiftly sent out notices to all those who have deposited Rs.500 and Rs.1000 notes worth more than Rs.2.5 lakh and individuals or firms have already received notices seeking explanation of the source of such funds.

The IT Department has issued notices under section 133 (6) of the Income Tax Act (power to call for information) in all urban areas so far after the banks duly reported cases of “unusual or suspicious volumes of cash deposits” in their accounts.

The notices contain details of the date and amount deposited by an individual or firm in the old currency in the bank. The notice has sought to examine the documents, books of accounts and bills showing the source of funds. “If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,” said an I-T notice.

Following the demonetisation from November 8, the department has kept a tab on real estate firms, jewellers and suspected hawala operatives who may have resorted to depositing their black money to make it white hoping to cite some reason for their cash funds.

All cooperative banks have also come under scrutiny after a Mangalore cooperative bank showed a deposit of old currency worth Rs. 8 crore. The department has also issued notices to charitable and religious institutions which received huge amounts in the form of donations.rp_income-tax-logo-1_1123560f.jpg

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