I-T ISSUES 5,100 NOTICES FOR SUSPICIOUS DEPOSITS POST CASH BAN
The income tax department issued about 5,100 notices for high-value suspicious deposits post demonetisation and people have admitted to undisclosed income of over Rs 5,400 crore. The department has conducted more than 1,100 search and survey operations and issued about 5,100 notices for verification of suspicious transactions of high-value cash deposits. "These actions led to seizure of valuables of more than Rs 610 crore which includes cash of Rs 513 crore and admission of undisclosed income of more than Rs 5,400 crore till January 10, 2017," Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Rajya Sabha The department has identified 17.92 lakh individuals whose tax profiles were not in line with the cash deposits made by them during the 50-day demonetisation window that ended on December 30, 2016. As part of the initial phase, it had sought online response on source of cash deposits made by these people. The Income Tax Department has received responses from 8.38 lakh persons out of the 18 lakh SMS/email queries it had sent to 17.92 lakh people for suspicious deposits post demonetisation. more than 12 lakh responses have been received from 8.38 lakh distinct PANs/persons which are under verification. The tax profiles of 17.92 lakh people were "not in line" with the cash deposits made by them during the 50-day demonetisation period. Under the Operation Clean Money launched on January 31, the I-T department sought online response on source of cash deposited by these persons. The government had on November 8, 2016, demonetised 500 and 1,000 rupee notes and asked holders of such currencies to deposit them in bank accounts by December 30. "In case explanation of source of cash is found justified, the verification is closed. The verification is also closed if the cash deposit is declared under the Pradhan Mantri Garib Kalyan Yojana," Gangwar said. He said an appropriate action in non-compliant cases is taken as per law, which includes searches, surveys, assessment of income, levy of taxes, penalties and filing of prosecution complaints in criminal courts. In a separate reply to a question in the Lok Sabha, Gangwar said during April 1, 2014 to December 31, 2016, the I-T department conducted searches in 1,838 groups of assessees, seizing undisclosed assets worth Rs 2,607 crore. These assessees admitted to undisclosed income of Rs 33,210 crore. During the same period, the department conducted 14,472 surveys that resulted in detection of undisclosed income of Rs 31,929 crore. In the compliance window provided under the 2015 foreign black money law, 648 disclosures involving undisclosed foreign assets worth Rs 2,476 crore were made. Further, under the income declaration scheme 2016, the government has received 64,275 declarations with undisclosed income of Rs 65,250 crore. To a query on the estimated amount of black money, Gangwar said, "There is no official estimation of quantum of black money within and outside the country." To another query, Gangwar said enforcement actions of the tax department during April 1, 2014 to December 21, 2016, have led to admission of undisclosed income of more than Rs 60,000 crore and seizure of undisclosed assets worth Rs 2,607 crore. "About Rs 8,400 crore have been brought to tax on account deposits made in unreported foreign bank accounts in HSBC cases in last about 2 years and about Rs 8,500 crore of credits in the undisclosed foreign accounts of Indians whose names were disclosed by the International Consortium of Investigative Journalists (ICIJ) have been detected," he said. In another reply, Gangwar said the tax department has conducted 848 searches during April-December 2016 and seized assets of Rs 1,133 crore. The undisclosed income admitted to in the said searches was Rs 11,856 crore. Further, 5,015 surveys were conducted in April-December which brought to light undisclosed income of Rs 9,454 crore.
Minister of State for Finance Santosh Kumar Gangwar