9 lakh accounts are ‘doubtful’

Almost half of the 18 lakh people under the I-T scanner for suspicious bank deposits post-cash ban have been put in the ‘doubtful’ category. However, action against them will be taken only after the new tax amnesty scheme ends on March 31.

The I-T department had sent SMSes and emails to 18 lakh people, who according to its data had made suspicious deposits of over `5 lakh during the 50-day window to get rid of old `500 and `1,000 notes following demonetisation. They were asked to clarify on the deposits and its source by February 15.

Till last week, over 5.27 lakh taxpayers have responded to SMS and emails sent. Those who did not reply must have a “good legal explanation” and may have chosen to show them in the tax returns.

Almost half of the 18 lakh people under the I-T scanner for suspicious bank deposits post-cash ban have been put in the ‘doubtful’ category. However, action against them will be taken only after the new tax amnesty scheme ends on March 31.

Sources said those who did not reply must have “good legal explanation” for their cash deposits and may have chosen to show them in the tax returns. However, they pointed out that mere showing cash deposits in I-T returns is not sufficient as any abnormal rise in income for 2016-17 over previous years will be considered as unaccounted wealth or blackmoney and treated as per law.

“However, since the SMS and e-mail correspondence do not have any legal backing, the department will have to send formal notices and then wait till March 31 for the end of (tax amnesty scheme) PMGKY and then take action against doubtful cases,” said sources.

The Centre had announced the PMGKY after demonetisation to offer a last chance to people having accounted cash to come clean by paying 50 per cent tax on deposits of junk currencies.

Under the PMGKY declarants also have to park a quarter of the total sum in a non- interest bearing deposit scheme for four years.