The Income Tax (I-T) department on Thursday conducted multiple raids in Delhi, Mumbai and other cities in the wake of demonetisation of currency. The department had been keeping a close watch on large deposits in banks. According to sources, the income tax department will scrutinise the annual information reporting (AIR) of entities and individuals who make high-value deposits to banks while exchanging old currency notes. Sources said the department will take up cases for scrutiny in the next 50 days starting November 10.
“Once a case is picked for scrutiny the department will call for information from the assesses and the onus will be on the assesses to show the source of the money and if it was disclosed to the income tax department. The disclosures are not exempt from action from agencies such as the service tax, sales tax, income tax,” said a source.
Should an entity or individual fail to account for the money disclosed, they will have to pay 30 per cent tax on the undisclosed income.