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		<img align="" alt="Passengers gives 500 rupees for train ticket at a booking window" class="imgCont" height="464" src="http://bsmedia.business-standard.com/_media/bs/img/article/2016-11/09/full/1478692334-1616.jpg" style="border: 1px solid #DDD; margin-right: 10px; padding: 1px; float: left; z-index: 0;" title="Income-Tax department keeps a close watch on money changers" width="620" />
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				The Income-Tax (I-T) department is keeping a hawk&#39;s eye on the operations of money changers known to help black money holders convert large amounts of unaccounted cash.</div>
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				With the government banning Rs 500 and Rs 1,000 notes with immediate effect from Tuesday night, a lot of people with black money are seeking to get their existing notes to be converted into the new set of Rs 500 and Rs 2,000 notes seamlessly. And money changers come into play here. The new set of currency will be launched on November 11 by the Reserve Bank of India.&nbsp;</div>
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				According to an I-T official, these operators are paid a fixed 10% - 15% commission for exchanging old with new notes. They use multiple bank accounts to do this. And a token fee needs to be paid before the transaction.&nbsp;</div>
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				Business Standard visited some money changers who said that they would charge 15% commission to convert Rs one crore and the converted amount will be given by tomorrow afternoon. Interestingly, they were going about their business just behind the Reserve Bank of India (RBI) building in Fort.&nbsp;</div>
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				When asked how they get the supply of the new currency, they said that they were in the business for a long time and had made their own arrangements. There were a lot of enquiries from individuals to convert as well.&nbsp;</div>
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				Tax officials said that they are aware of such practices in the market. &ldquo;They are several currency suppliers in the market, some are hand-in-glove with bullion traders while some with bank officials, explained the tax official.</div>
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				In some cases, money operators are chartered accountants who launder money on behalf of clients and provide cheques/cash to beneficiaries to convert black into white, he added.</div>
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				Tax officials suspect that high networth individuals and big businessman would opt for this route to evade tax and not declare their source of income. As per the rule, one can exchange old notes at banks/post offices till December 30. From November 10 to 24, the limit for exchange will be Rs 4,000 per day. After November 24, this limit will be increased. &nbsp;</div>
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				Tax officials said that if the deposits in banks do not match with individual tax filing, it can attract 100% to 300% of the tax rate (30% tax).The department, on its part, has also created data base of individuals who were raided by the I-T officials in the past two years. These data has provided officials with the names of thousands of suspected tax evaders and companies who could be involved in black money transactions.&nbsp;</div>
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				The government, while announcing the demonetisation of the old notes, appealed to people to not indulge in such kind of money exchange. &ldquo;The accumulation of unaccounted wealth fuels inflation and corrodes the very basis of our economy. I would appeal to citizens that people holding lots of unaccounted cash may seek your help &mdash; don&rsquo;t let yourself be used for exchange of such notes,&rdquo; economic affairs secretary Shaktikanta Das said on Tuesday.&nbsp;</div>
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The government has appealed to people to not indulge in such kind of money exchange

People at a petrol pump to fill petrol as the Prime minister ordered to ban 500 and 1000 rupees notes as part of NDA Govt's fight against black money and corruption in New Delhi

Going to currency exchanges with old notes? The taxmen are watching you

The government has appealed to people to not indulge in such kind of money exchange

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