Tax sleuths raid jewellers, money exchangers
We have reasons to believe that black money is being used to buy gold since the demonetisation... We’ll check stock-holding and sales since November 7. If there are any spikes after the announcement, we’ll order probe.
NEW DELHI: The tax department is cracking down on big jewellers countrywide after multicity surveys by its intelligence wing found business malpractices following Wednesday’s demonetisation of `500 and `1000 notes.
The searches and surveys were conducted in Delhi, Punjab and Mumbai on Thursday, a top finance ministry official said on Friday. “We have reasons to believe that black money is being used to buy gold since the demonetisation,” he told Hindustan Times.
The directorate general of Central Excise Intelligence has sought information on sales and stocks from 600 jewellers across 25 cities, including Pune, Gurgaon, Faridabad, Kolkata and Visakhapatnam, he added. A FINANCE MINISTRY OFFICIAL
“We will check the stock-holding and sales since November 7,” the official said. “If there are any spikes after the demonetisation announcement, we will order probe.”
Sources said the government has information about attempts to convert hoarded money ever since Prime Minister Narendra Modi’s Tuesday-night announcement on television about withdrawing the two high-value currency notes from Wednesday.
“The other channels of flushing out black money are money exchangers and charitable trusts,” the finance ministry official said.
While the Enforcement Directorate (ED) is scrutinising big money exchangers, the income tax department has asked for information from prominent temples on donations and charities.
Revenue secretary Hasmukh Adhia said the ED was conducting surveys on 67 foreign exchange dealers across the country to check illegal money transactions in lieu of old currency.
“No probe has been ordered. We are collecting information from jewellers and foreign exchange dealers,” he added.
The Central Board of Direct Taxes is keeping a “close watch” on illegal transactions and mis-utilisation of old currency notes, according to Sushil Chandra, chairman of the statutory authority.
“The government has zero tolerance for black money. We will ensure a complete choke on circulation of unaccounted money,” he told Hindustan Times.
Sources in the income tax department said `50 crore was recovered on Thursday from sale of gold. People who thronged jewellers and gold stores to whiten black money made purchases below `2 lakh to avoid quoting Permanent Account Number (PAN) numbers, the sources added.
Besides, `50 lakh of “dead currency” was seized at the Delhi airport from a person from Hyderabad, and `1 crore at the Kolkata airport.