Business News

Centre in no mood to spare depositors

eNarada, Bengaluru, January 27, 2017

For all those of you who had deposited more than Rs 2.5 lakh in your bank accounts, tax men are sure to find you.

Union government has issued a diktat to Central Board of Direct Taxes (CBDT) take action against all such cases by March 31. Ever since the Rs 500 and Rs 1,000 currency notes were demonetised by the Centre on November 8, the CBDT had amended the rules (November 15) in the Income Tax Act and asked banks to furnish a statement of financial transactions in one or more saving accounts of a person for cash deposits of Rs 2.5 lakh or over between November 9 and December 30.

Bank- Strike

The notification also demanded banks to submit details of persons depositing Rs 12.5 lakh or over for all current accounts. Now, the Union Government has asked the CBDT to scrutinise each of these accounts, get details from the account holders and file the details of each of such cases by March 31. Sources said that the CBDT has been told not to spare even a single customer!

The CBDT has been issuing notices asking such depositors to explain the source of income. The assessee will need to provide documents supporting his claim regarding the source of money. If sufficient explanation is not provided, proceedings and penalties would follow. In case of those individuals who had not filed any returns, they can receive a notice under Section 142(1). The person is required to file the returns or produce relevant information and records as demanded by the assessing officer. If this is accompanied by a notice under Section 143(2), the person is required to attend the proceedings or send his accountant or lawyer for it. After scrutiny, if the officer is satisfied with the explanations, he will issue a clean chit, otherwise he will state the discrepancy between the reported income and actual income and calculate the tax demand.

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