Income tax Department will call details of high value deposit from banks and post offices

Income Tax Department is ready to follow-up demonitisation action

After Two Weeks of Prime Minister Narendra Modi’s aggressive demonetisation move, and a hair-raising Rs 21,000 crore of deposits slipping into poor people’s Jan Dhan account, the income tax department is getting ready to take strict actions.

It has started sending missive to banks and post offices to submit details of high value cash deposits in banks taking place after the announcement of demonetisation scheme. The department is planning to use data analytics tools to examine the investment and consumption pattern of people depositing Rs 50,000 or more in a single day.

People who will deposit a total of Rs 2.5 lakh between November 10 and December 30 this year will also be under IT scanner. Cash deposits to Rs 12.5 lakh or more in current accounts will also scrutinised, a senior official in income tax department said.

“Banks and post offices have to furnish PAN details of such transactions. We have learnt that several branches may not collected PAN details for deposits over Rs 50,000. They have to chase the depositors and get the PAN details and inform us,” the official said, in the condition of anonymity.

The government has kept the deadline for banks for furnishing the statement of financial transaction by January 31, next year.

Two banks in Kolkata confirmed the receipt of income tax notice which came from the intelligence and criminal investigation.

While the demonetisation scheme aimed at wiping out unaccounted money from the system, a whopping Rs 21000 crore has reportedly been deposited in Rs 500 and Rs 1000 notes to turn black money into white, following the big announcement on November 8. Banks opened some 24 crore Jan Dhan accounts in Modi’s financial inclusion drive.

West Bengal is reportedly have the maximum unauthorized deposits into Jan Dhan accounts.

“It will not be very difficult to trace the sources of this money,” said another income tax official.

There are rackets operating across India who engage money mules, who willingly or unwillingly act as intermediaries to channel illegal money into the banking system. It is suspected that Jan Dhan account holders have been used as mules by illegal cash hoarders.