Income tax dept issues 5,100 notices for suspicious cash deposits after note ban

The income tax department has identified 17.92 lakh individuals whose tax profiles were not in line with the cash deposits made by them during the demonetisation window


The income tax department has conducted more than 1,100 search and survey operations and issued about 5,100 notices for verification of suspicious transactions of high-value cash deposits. Photo: iStock
The income tax department has conducted more than 1,100 search and survey operations and issued about 5,100 notices for verification of suspicious transactions of high-value cash deposits. Photo: iStock

New Delhi: The income tax department has issued about 5,100 notices for high-value suspicious deposits after demonetisation and people have admitted to undisclosed income of over Rs5,400 crore, Parliament was informed on Wednesday.

The department has conducted more than 1,100 search and survey operations and issued about 5,100 notices for verification of suspicious transactions of high-value cash deposits, minister of state for finance Santosh Kumar Gangwar said in a written reply in the Rajya Sabha.

“These actions led to seizure of valuables of more than Rs610 crore which includes cash of Rs513 crore and admission of undisclosed income of more than Rs5,400 crore till 10 January 2017,” he said.

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The department has identified 17.92 lakh individuals whose tax profiles were not in line with the cash deposits made by them during the 50-day demonetisation window that ended on 30 December 2016. As part of the initial phase, it had sought online response on source of cash deposits made by these people.

To another query, Gangwar said enforcement actions of the tax department during 1 April 2014 to 21 December 2016, have led to admission of undisclosed income of more than Rs60,000 crore and seizure of undisclosed assets worth Rs2,607 crore.

“About Rs 8,400 crore have been brought to tax on account deposits made in unreported foreign bank accounts in HSBC cases in last about 2 years and about Rs8,500 crore of credits in the undisclosed foreign accounts of Indians whose names were disclosed by the International Consortium of Investigative Journalists (ICIJ) have been detected,” he said.

In another reply, Gangwar said the tax department has conducted 848 searches during April-December 2016 and seized assets of Rs1,133 crore. The undisclosed income admitted to in the said searches was Rs11,856 crore. Further, 5,015 surveys were conducted in April-December which brought to light undisclosed income of Rs9,454 crore.

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