No escaping the taxman: PAN must, I-T notices on dubious deposits, property buys

All banks will have to report to I-T dept on deposits above Rs 2.5 lakh in savings accounts

The government on Wednesday asked banks and post offices to report to the Income Tax Department all deposits above Rs 2.5 lakh in savings accounts, and those in excess of Rs 12.5 lakh in current accounts, made during the 50-day window for depositing demonetised high value notes.Banks and post offices now have to file a relevant statement of financial transaction on or before January 31, 2017, the notification said.

The Reserve Bank of India has asked banks to ensure customers submit a copy of PAN card for any cash deposit exceeding Rs 50,000, if it is not already seeded with the account, to ensure tax rule compliance in the wake of the recent decision to abolish Rs 500 and Rs 1,000 notes.

PAN required if combined cash deposits exceed Rs 2.5 lakh till December 30: Up until now, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision. But a circular issued on Tuesday says deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. 

The government has been keeping a close vigil on the kind of deposits in bank accounts following the recent demonetisation order and those who will deposit over Rs 2.5 lakh in cash will be scrutinised.

I-T lens on current account deposits over Rs 12.5 lakh

The Central Board of Direct Taxes (CBDT) has  amended rules in the Income Tax Act and asked banks to furnish a statement of financial transaction in one or more current accounts of a person for cash deposits of Rs 12.5 lakh and above between November 9 and December 30.The CBDT's notification on November 15 also said that for all accounts except current accounts, banks would have to submit details of persons depositing Rs 2.5 lakh and above for all accounts except current accounts

Taxmen preparing for swoop on dubious depositors post Dec 30

Come 2017, and the Income Tax department is preparing to serve notices on all those now depositing money in banks that is disproportionate to their known sources of income. Informed sources said the department will start serving the notices just after December 30 -- the deadline set by the central government to deposit and exchange the demonetised Rs 500 and 1,000 notes. The Income Tax department started preparing the notices from November 10 -- when banks opened across the country after a day's closure following the demonetisation announcement.The notices will go to those who have deposited or received cash in their accounts more than double their income.

Also being tracked are  ash dealings and property purchases by suspicious account holdersThe transactions under the tax lens include cash deposits of Rs 2.5 lakh or more in a savings bank account and sale or purchase of immovable property valued at Rs 30 lakh or more.

Income tax notices to religious, charitable trusts: The Income-tax department has issued letter to dozen of religious and charitable trusts, asking them to furnish details of ‘cash balances’ as on November 8, following the demonetisation of Rs 500 and Rs 1,000 currency notes.According to notice, the trust and societies has been asked to submit cash balances as per their books of accounts as on 31 March up to 8 November to this office,” it said. The notice also advises the management of such institutions not to deal with Rs 1,000 and Rs 500 notes, by either accepting cash or paying in cash for any of your activities after November 8, 2016.

Builders not spared either: The Income Tax department on Wednesday surveyed some real estate players in the national Capital region to check reports of alleged profiteering and tax evasion by these entities while converting the recently demonetised currency notes. Officials said the department conducted the exercise on at least four such entities in the Delhi-NCR region and visited over half-a-dozen premises. They said the tax sleuths made an inventory of cash and sale documents at these locations and checked sale documents.The department, since last week, had detected unexplained cash and sales worth Rs 100 crore in a similar crackdown by traders, jewellers and other operators while converting demonetised currency notes.

Raids on jewellers: The tax department has surveyed various cities in Karnataka and Goa and large metros such as Kolkata and Mumbai and made significant recoveries. In the past week over 600 jewellers and 100 money exchangers were sent notices by tax authorities to check illegal use of old currency. In Goa, a jeweler in Panaji was caught with Rs 90 lakh in cash and jewellery stocks. He was from Mumbai and sold jewelry worth Rs 45 lakh to a client in Goa. Over Rs 4 crore was found during raids in Bengal.