Income Tax Dept to probe deeper into suspicious bank accounts

The Income Tax Department has widened its scrutiny ofsuspicious transactions postdemonetisation to cover term deposit accounts, loanrepayments and advance remittances for imports in the postdemonetisationperiod.

A senior official confirmed that after analysing cashdeposits made in bank and post office accounts during the 50-day windowprovided to get rid of the junked 500 and 1,000 rupee notes, authorities arenow examining term deposit and loan accounts that were opened after November 8demonetisation decision.

There has been afour-fold jump in the regular "suspicious transaction reports" from banks andthese are now being closely examined, he added.

The Income Tax Department is already taking action in caseswhere cash deposits above Rs 50,000 have been made without quoting PAN.

 Senior officials areconfident that the demonetisation exercise will lead to a huge expansion in thetax base and a jump in direct tax collection.

With preliminary estimates showing that close to Rs 15 lakhcrore of the Rs 15.44 lakh crore of old 500 and 1,000 rupee notes that were incirculation before demonetisation have made their way back to banks, thegovernment is stepping up its investigations.

Finance Minister Arun Jaitley has already stated that merelydepositing old notes in banks does not turn them white and the Income TaxDepartment would be closely looking at these accounts.

It is easier to track the cash which has returned to bankingchannels, thus making tax evasion more difficult, a senior official pointedout.

The focus is also on non-cash deposits in various bankaccounts by way of RTGS and other means, and would continue to share itsfindings with the concerned law enforcement agencies.

Analysis of the deposits made, by way of cash and non-cash,in various kinds of new accounts including term deposit accounts and loanaccounts that have been opened during the period of demonetisation is beingdone, he said.

Income tax department and other agencies like ED are takingaction based on the analysis. On analysis, details of more than 60 lakhaccounts which have cash deposits of Rs 2 lakh and above have been disseminatedand the total amount deposited in these accounts is more than Rs 7.34 lakhcrore.

Also, details of cash deposits totalling more than Rs 10,700crore in different accounts in the North-Eastern states have also beendisseminated.

The official said Income-Tax Department and ED have beenprovided with the details of cash deposits of close to 30,000 crore indifferent accounts of various kinds of cooperative banks and Regional RuralBanks.

The Income Tax Department has undertaken numerous actions,both intrusive and nonintrusive, based on the intelligence.

The Income Tax Department on Sunday warned black moneyholders that their undisclosed assets were not hidden from its gaze whileadvising them to avail of the last chance offered by the PMGKY disclosurewindow to come clean.

The department has also highlighted the salient features ofthe Pradhan Mantri Garib Kalyan Yojna (PMGKY), 2016 announced by the governmentpost- demonetisation. "Your undisclosed accounts or cash deposits are nothidden from us. Helping the less fortunate can help you.

 Invest yourundisclosed income in the PMGKY and accelerate the socio- economic growth ofthe deprived, the Income Tax Department said in an advertisement. It alsowarned that nondeclaration of such undisclosed income will be liable to tax,surcharge and cess at the rate of 77.25 per cent along with penalty andprosecution.

 At the same timedepartment has assured total confidentiality under the scheme that is open tillMarch 31. Up till now over Rs 300 crore has been declared from across thecountry till now as part of this ongoing black money window. Under the PMGKY,undisclosed income can be declared by paying 50% of it in taxes and surcharges.