Keeping the heat on black money hoarders, the income tax department on Tuesday said certain taxpayers have admitted to R2,000 crore of undisclosed income while it has seized R130 crore worth of cash and jewellery.
The I-T department has carried out swift investigations in over 400 cases since demonetisation on November 8. “Detecting serious irregularities beyond the Income Tax Act, the Central Board of Direct Taxes decided to refer such cases to the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), enabling them to examine the criminal conduct for immediate necessary action,” the finance ministry said. Over 30 such references have already been made to the ED and CBI.
As reports trickled in that people were using various methods to convert black money into white, the government introduced a Taxation Laws (2nd Amendment) Bill, 2016, in Parliament on November 26, that seeks to tax unexplained money deposited in banks at 50% under a scheme while it could go up to 85% for those caught by I-T.
The Bengaluru investigation unit of the I-T department has sent maximum references (18) to ED. These were cases where undisclosed cash in new high denomination notes was seized by the department. The Mumbai unit of the department has referred a case where R80 lakh in new high denomination currency notes were seized. Ludhiana Unit has referred 2 cases (seizures of $14,000 and R72 lakh in cash and Hyderabad (seizure of R95 lakh).
“Pune’s reference stems from a seizure of R20 lakh cash, including R10 lakh in new currency notes, from an un-allotted locker of an urban cooperative bank, the key of which was in the possession of the CEO of the bank,” it said.