Demonetisation: I-T dept conducts surveys in multiple cities

Taxmen today conducted surveys in Delhi, Mumbai and some other cities in the wake of reports of alleged profiteering and tax evasion by traders and other operators in reported conversion of demonetised currency notes.

Officials said the survey operations were carried out in at least four locations in the national capital including popular market places like Karol Bagh, Dariba Kalan and Chandni Chowk, three locations in Mumbai and a few others in Chandigarh and Ludhiana.

Union Revenue Secretary Hasmukh Adhia described the department's action as surveys under the Income Tax law.

Under the survey action, the tax sleuths visit business premises of the trader/operator and make analysis of the available stock and record it whereas under search operations both residential and business premises are visited by the taxman.
 

Sources said the department had received "specific inputs" that some traders, jewellers, currency exchanges and hawala dealers were allegedly exploiting the recent currency demonetisation of Rs 500 and Rs 1,000 notes and were changing currencies at "discounted" prices, thereby profiteering illegally.

They said the operations were planned after CBDT Chairman Sushil Chandra yesterday asked all investigation units in the country to keep a check on suspicious movement of huge cash and other illegal transactions leading to tax evasion.

Officials added almost over 100 tax sleuths along with police officials were roped in for the survey operations.

Finance Minister Arun Jaitley today assured people that taxman will not hound those making small deposits in scrapped Rs 500/1,000 currency adding, however, people with "large amounts of undisclosed monies will have to face the consequences under the tax laws".

Top I-T department officials had yesterday said the government's directive to them is "very clear", saying any instance of tax evasion and black money should be dealt with strictly, especially after two opportunities in the form of one-time stash declaration window has been provided.

In a surprise move, Prime Minister Narendra Modi had on November 8 announced demonetisation of Rs 500 and Rs 1,000 notes and introduction of the new Rs 500 and Rs 2,000 ones with additional security features.