1. Demonetisation: I-T Department serves notices to 60,000 entities in operation Clean Money 2.0

Demonetisation: I-T Department serves notices to 60,000 entities in operation Clean Money 2.0

IT Department detected Rs 9334 crore undisclosed income post-demonetisation till Feb 28 said CBDT.

By: | New Delhi | Updated: April 14, 2017 11:04 AM
Income-Tax department launches clean money operation phase 2.0 (PTI)

After getting poor response to the Pradhan Mantri Garib Kalyan Yojana (PMGKY), an income declaration scheme, the Income-tax department has again launched the second phase of operation ‘Clean Money’ to detect black money post-demonetisation; by issuing notices to 60,000 entities including 1,300 high-risk persons. IT Department detected Rs 9334 crore undisclosed income post-demonetisation till Feb 28 said CBDT.

“All the cases where no response is received shall also be subjected to detailed inquiries,” the CBDT said. A senior officer said advanced data analytics has been used to identify suspect cash deposits before launching the
latest edition of the operation. As part of the first phase of the ‘Operation Clean Money’, launched on January 31 this year, the department had sent online queries and investigated 17.92 lakh persons out of which 9.46 lakh persons have responded to the department. Several locations were raided in Delhi. 200 Shell companies were detected and mopst of them converted balck money.

By this move, the IT department aims to catch hold of tax evaders who could have deposited large sums during the demonetization drive. While the first phase of the so-called Operation Clean Money scrutinized cash deposits of over ~10 lakh, the second phase will examine deposits between Rs 5 lakh and Rs 10 lakh. A data analytics firm has already started the analysis of such cash deposits made during demonetisation drive.

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The data analytics firm has been analysing the deposits in bank accounts before and after November 8 last year — the day the government decided to junk 86 per cent of the currency in circulation. this exercise will also attempt to link individuals with multiple accounts or PAN numbers who have deposited large sums of money. The I-T Department has begun analysing accounts which show a pattern of deposits or have some common linkage like common address, PAN, telephone number, email address or name.

While standalone deposits are not under scrutiny right now, IT department is also likely to ignore deposits below five lakhs. In this phase people who deposited unaccounted cash in denominations of Rs 500 and Rs 1000.

(With inputs from PTI)

  1. A
    Apte
    Apr 14, 2017 at 3:21 pm
    1. Income Tax notices are welcome. Corruption and unaccounted income earned through corrupt deals are not something new. Resolve to deal with the menace of black money is new. But let us be frank about it: CBDT is powerless when it deals with middle/lower level bureaucracy which generates huge amount of black money in ‘normal’ course. CBDT is also powerless when it deals with politicians and political parties and amount of Rs. 9334 crore mentioned in the news report is pea nuts. 2. Are the Income Tax Officers (ITOs) not aware of tax evasion in all such trades and professions wherein it is cash that matters? Practising doctors and surgeons, lawyers and estate agents: these are just a few examples of professionals who prefer cash payments. My view is that CBDT and ITOs have to show administrative will to use vast amount of information which is available with the Income Tax Department to catch those with unaccounted money.
    Reply
    1. N
      Nagar
      Apr 14, 2017 at 12:57 pm
      Let every taxable Indian pay his due. India needs money to develop, grow and get militarily better prepared.
      Reply

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