Demo: I-T to is­sue no­tices to sus­pi­cious cash de­pos­i­tors


NEW DELHI: The In­come Tax De­part­ment will soon is­sue no­tices to those who have de­posited “sus­pi­cious” amounts of money in banks post-de­mon­eti­sa­tion and have not re­sponded to tax­man’s pre­lim­i­nary com­mu­ni­ca­tion, the CBDT said on Tues­day.

Sushil Chan­dra, chair­man, Cen­tral Board of Di­rect Taxes (CBDT) said de­spite the clos­ing of I-T re­turns fil­ing pe­riod, some en­ti­ties and in­di­vid­u­als failed to file their tax re­turns, as re­quired un­der the ‘Op­er­a­tion Clean Money’ (OCM) ini­ti­ated by the govern­ment to check black money post de­mon­eti­sa­tion.

“The govern­ment has al­ready taken all mea­sures un­der the Op­er­a­tion Clean Money. We have given enough time to peo­ple to file their re­turns and come out clean,” he said.

But, we have found that even af­ter the last date of re­turns, a large num­ber of per­sons have not filed the same, Chan­dra said.

“So, the next step would be that the per­sons who have not filed their re­turns, we are go­ing to is­sue them no­tices un­der sec­tion 142 (1) of the I-T Act (in­quiry be­fore as­sess­ment),” he told re­porters on the side­lines of an event at the In­dia In­ter­na­tional Trade Fair (IITF) here.

The peo­ple who have filed their re­turns will be ex­am­ined against the amounts they have de­posited dur­ing the pe­riod of de­mon­eti­sa­tion so that we can see whether they have cor­rectly dis­closed their in­come or not, the CBDT chief said.

Chan­dra noted that de­mon­eti­sa­tion and the sub­se­quent OCM led to an over­all in­crease of 20 per­cent con­cern­ing the peo­ple who file their I-T re­turns.

“It (Op­er­a­tion Clean Money) has been a very suc­cess­ful op­er­a­tion by the de­part­ment. We an­a­lysed the num­ber of re­turns that were filed and found that in the in­di­vid­ual cat­e­gory there is an in­crease of 23.5 per­cent.

“If you see the per­sons who have availed the pre­sump­tive scheme of tax fil­ing, there has been an in­crease of 50 per­cent,” the top boss of the tax de­part­ment said.

This shows that peo­ple want to come out clean, he said.

Over­all, there is a growth of 20 per­cent in the I-T re­turn fil­ings which shows that “peo­ple are clear about their obli­ga­tion”, he said.

The CBDT chair­man added that over 20,000 cases of re­turns filed post the note ban, have been se­lected for a de­tailed pro­ce­dure of scru­tiny by the tax­man.

NEW DELHI: The In­come Tax De­part­ment is match­ing the “tax pro­files” of all prop­erty reg­is­tra­tions of above Rs 30 lakh un­der the pro­vi­sions of the anti-be­nami Act, as ac­tion against il­licit as­set hold­ers is set to in­ten­sify, the CBDT chief said on Tues­day.

Cen­tral Board of Di­rect Taxes (CBDT) Chair­man Sushil Chan­dra said the tax­man is also in­ves­ti­gat­ing those shell com­pa­nies and their di­rec­tors whose op­er­a­tions were re­cently “de­barred” by the govern­ment as part of the drive to check black money gen­er­a­tion through their abuse.

The top boss of the I-T de­part­ment said that till now, the tax­man has at­tached 621 prop­er­ties, in­clud­ing some bank ac­counts, and the to­tal amount in­volved in these cases, be­ing probed un­der the Be­nami Trans­ac­tions Act, is about Rs 1,800 crore.

“We will de­stroy all in­stru­ments that are used to con­vert black money into white. This also in­cludes shell com­pa­nies.

Also, the de­part­ment is check­ing the in­come tax pro­files of all prop­er­ties which have a reg­istry value of over Rs 30 lakh.

“We get this in­for­ma­tion un­der the law. If these pro­files are found sus­pi­cious or in­cor­rect, ac­tion will be taken (un­der the Be­nami Act),” Chan­dra said.

He made the re­marks while in­ter­act­ing with re­porters af­ter in­au­gu­rat­ing the In­come Tax De­part­ment pav­il­ion at the In­dia In­ter­na­tional Trade Fair (IITF) which be­gan at Pra­gati Maidan here on Tues­day.

Chan­dra said they are tak­ing the Be­nami as­sets cases “very se­ri­ously” and the tax of­fi­cials have done a lot of work on this front.

“We have opened 24 units (of the I-T to im­ple­ment the anti-be­nami Act) all over the coun­try. We are get­ting in­for­ma­tion from dif­fer­ent sources,” he said.

“Our ef­forts in this direc­tion are be­ing in­ten­si­fied fur­ther,” he said.

Chan­dra said that the tax­man is also match­ing the data “of shell com­pa­nies which have been de­barred re­cently”.

If these com­pa­nies have some be­nami prop­erty or any other fi­nan­cial trans­ac­tion that the I-T de­part­ment has re­ceived and that is not match­ing, ac­tion will be taken, he said.

Af­ter Prime Min­is­ter Naren­dra Modi an­nounced the with­drawal of Rs 500 and Rs 1,000 notes, the two high­est value ban­knotes of the time, from cir­cu­la­tion on Novem­ber 8 last year, the I-T de­part­ment had warned peo­ple against de­posit­ing their un­ac­counted ban­knotes in ac­counts main­tained by some­one else.

Such an act, it had said, would at­tract crim­i­nal charges un­der the Be­nami Prop­erty Trans­ac­tions Act, 1988, ap­pli­ca­ble on both mov­able and im­mov­able prop­er­ties.

The I-T de­part­ment is the nodal de­part­ment to en­force the Be­nami Act in the coun­try.

The de­part­ment started ini­ti­at­ing ac­tions un­der the new Be­nami Trans­ac­tions (Pro­hi­bi­tion) Amend­ment Act, 2016 from Novem­ber 1 last year. The law pro­vides for a max­i­mum pun­ish­ment of seven years in jail and a fine.

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