Srinagar, Nov 21: The Income Tax Department in Jammu and Kashmir has started sending notices to people who have deposited heavy sums of money in banks since the announcement of demonetisation of Rs 500 and Rs 1000 notes by PM Narendra Modi earlier this month.
Official sources revealed that the Income Tax Department has issued scores of notices to the people in the state seeking “source” of funds from individuals and firms who have deposited huge amounts in banks in the form of scrapped Rs 500 and Rs 1000 currency notes after November 8.
“Some notices have been sent after banks reported various cases of suspicious volumes of cash deposits beyond Rs 2.5 lakh in many accounts. The accounts of various other suspected people are also being scanned,” an official of Income Tax Department told The Kashmir Monitor.
The official said the process will continue and accordingly, action will be taken against “these tax evaders”.
The Income Tax Department in its notices has invoked the Section 133(6) of the Income Tax Act, 1961, which empowers the I-T authorities to compel banks and other relevant institutions to furnish information which could be useful in connection with any pending proceeding or enquiry.
Principal Commissioner of Income Tax, J&K, Sangeeta Gupta confirmed that I-T Department has served notices to various people who have made heavy deposits in banks for the last two weeks.
“There are suspected accounts where some people have deposited heavy sums in banks and also some jewellers who took heavy sum from people to convert that into gold. So far notices have gone to many people in Jammu and the process has been initiated to send similar notices to people in Kashmir as well,” Sangeeta told The Kashmir Monitor. “We are collecting details and the process will go on against such people,” she said.
Further the I-T Department has also recently issued notices to charitable and religious organisations enjoying tax exemptions, to inform it about their cash balances as of November 8 when the government demonetised Rs 500 and Rs 1,000 currency notes. The notices were issued in order to keep a check on possible “accommodation” of black money in old currency by way of making charitable contributions or donations to these organisations, sources said.