All eyes on black money: I-T even looking into FY11 cash deposits, realty purchases

I-T dept may order reassessment if no response is given or the response is found to be unsatisfactory

 

Cash deposits made even before the Modi government's demonetisation drive that began in November last year are under the income tax (I-T) department's scanner, reported the Economic Times on Thursday.

According to the financial daily, income tax efiling sleuths have gone as far back as financial year 2011 in their hunt for suspicious cash deposits and sought explanations from the depositors in question. Further, the I-T department has sent notices to home buyers where the declared value of the purchase was found to be lower than the prices that prevailed in past transactions in that area.

In fact, according to the financial daily, income tax filing authorities have classified cases from FY11 as high priority since they would become time-barred soon. In case the tax sleuths don't receive a response regarding the cash deposits under their scanner or the response is not found to be satisfactory, they can order a reassessment.

According to the report, the I-T department has asked individuals and entities involved in the transactions in question to provide their permanent account numbers and the returns they filed for the financial year in question. → Efiling of Income Tax ←

The move comes at a time when the I-T department is moving ahead with concluding investigations into high-risk category individuals suspected of evading taxes. In an interview with Livemint, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said that his department would conclude its investigations into the financial dealings of close to 100,000 individuals who were suspected of tax evasion... Read Full Article

Rs 2.89 lakh cr deposited post note ban by 0.97 mn people under I-T radar

I-T says 14,000 properties of over Rs 1 crore each under scrutiny as owners have not filed returns

 

 

The Income Tax Department (ITD) today said that about 14,000 properties worth over Rs 1 crore each are under its scrutiny as their owners have not filed income returns.

Using data analytics, 13.33 lakh accounts of some 9.72 lakh persons with unusual cash deposits of around Rs 2.89 lakh crore was identified and response sought.

The resource was captured "within a short span of 3-4 weeks," the statement said, without saying how many of them were genuine deposits and how many were unaccounted money. → Income Tax Filing ←

It also did not give details of tax collected on unaccounted money.

The Operation Clean money has since moved into the next phase that "includes enforcement actions in high risk cases, taxpayer engagement through a dedicated website in medium risk cases and close monitoring in low risk cases.

"The exercise has also unearthed large number of persons and clusters having suspect transactions. These include about 14,000 properties of more than Rs 1 crore each where persons have not even filed Income Tax Return.

"The investigations are in progress," the statement said.

The high, medium and low risk cases have been identified through the use of advanced data analytics, including integration of data sources, relationship clustering and fund tracking.... Read Full Article