1. Rs 500, Rs 1000 Impact: To unveil black money, I-T dept launches raids in Delhi, Mumbai as people swamp banks

Rs 500, Rs 1000 Impact: To unveil black money, I-T dept launches raids in Delhi, Mumbai as people swamp banks

Income Tax department conducts multiple raids in Delhi, Mumbai and other cities in the wake of demonetisation of currency.

By: | New Delhi | Updated: November 10, 2016 9:26 PM
A person shows his new Rs 2000 note outside Reserve Bank of India as people queue up to exchange their old Rs 500 and 1000 notes in New Delhi. (PTI) A person shows his new Rs 2000 note outside Reserve Bank of India as people queue up to exchange their old Rs 500 and 1000 notes in New Delhi. (PTI)

In the series of strikes over black money and corruption, the Income Tax department has conducted multiple raids in Delhi, Mumbai and other cities. Earlier on Tuesday, Prime Minister Narendra Modi had announced withdrawal of 500 and Rs 1,000 rupee notes from circulation in a bid to flush out black money. PM Modi’s move is being seen as the strongest action against black money and corruption.

Till reports came in, similar survey operations by I-T authorities are also understood to have been launched in two south Indian cities.

Sources said the department had received “actionable 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.

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

Till reports came in, similar survey operations by I-T authorities are also understood to have been launched in two south Indian cities.

Sources said the department had received “actionable 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 the 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 that almost over 100 tax sleuths along with police officials have been roped in for the survey operations.

After the demonetisation of Rs 500 and Rs 1000 currency notes, PM Modi in his first comments said the government was unwavering in its efforts to create an India that is corruption free.

“I assure you the Government is unwavering in its effort to create an India that is corruption free and fruits of development touch every citizen,” Modi, who is on a three-day visit to Japan from today, tweeted. He had also appreciated people for keeping patience while standing in queues for note exchange.

“It is also heartening to learn that people are actively volunteering to help senior citizens withdraw money and exchange their currency. Such warmth, enthusiasm, and the patience to bear limited inconvenience for a greater good is indeed very heartening,” Modi further tweeted.

Though the decision was widely praised but a slew of petitions against demonetisation notes have been filed in various courts including in the Supreme Court where the Centre today filed a caveat that it be heard before any the order is passed. The apex court indicated that it may hear on November 15 the plea challenging the government decision while a PIL in this regard was dismissed by the Madras High Court.

On the other side, 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”.

(with inputs from agencies)

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