Income Tax department raises queries on suspicious bank account deposits post demonetisation

The income-tax department that had begun raising queries with regard to what it thinks are suspicious bank deposits after demonetisation was announced, including those made in cooperative banks, are set to start is going these accounts. 

The tax department could start summoning bank account holders in the coming month or two, say people in the know. The move is part of the government’s crackdown on money laundering in the wake of demonetisation. In the first round, the tax department was focusing on those bank accounts that do not have proper KYC (know your customer) credentials or cash deposits do not correspond with the individual’s income people close to the development said. ET reported on January 19 that the I-T department was looking to question cash deposits exceeding Rs 10 lakh. 

Experts say that the directive that many tax officers have received from the “highest level” is to go aggressively after those who may have played the system following demonetisation. The government may be looking to increase its revenues by bringing many individuals who may not have been paying taxes. It is learnt that many bank account holders suddenly deposited a huge chunk of money even as their income tax records do not correspond with such an amount. 

About 1.5 lakh account holders have deposited more than Rs 10 lakh each and there have been suspicious cash deposits in one crore accounts belonging to 75 lakh people. 

Income tax department has already raised queries on the e-platform. The queries raised are very specific and in some cases tax officials are demanding that bank account holders submit scanned copies of their PAN and Aadhaar cards. Experts said bank account holders who have not cleared the KYC process, especially in some cooperative banks, are to be questioned first.

Source : The Ec