I-T dept. unearths Rs.280-crore unaccounted wealth post-demonetisation in Telangana, A.P.

The department has also traced Rs.2,000 crore of unaccounted for wealth in both States.

December 19, 2016 11:53 pm | Updated December 20, 2016 02:49 am IST - HYDERABAD

Director General of Income Tax Department Nina Nigam and Chief Commissioner Sushil Kumar addressing the media on Monday.

Director General of Income Tax Department Nina Nigam and Chief Commissioner Sushil Kumar addressing the media on Monday.

Income Tax Department of TS and AP had detected Rs.280 crore of unaccounted income and conducted 22 searches post demonetisation of the high currency notes of Rs.500 and Rs.1000 by the Central Government. It had also recovered Rs.11 crore in cash and Rs.4.2 crore worth of bullion, announced Chief Commissioner of IT-Hyd Sushil Kumar and Director General (Investigations) Nina Nigam here on Monday.

The department has also traced Rs.2,000 crore of unaccounted for wealth in both States.

“We have all the information of how much black money has made into the bank accounts and how much has gone from there. The department is very active. We know how to deal with it,” asserted Mr. Kumar at a press conference.

The meet was called to give details of the Prime Minister’s ‘Garib Kalyan Yojana’ (PMGKY) where those with black money can deposit the sum in their respective bank accounts by December 31 if they are still holding onto old currency notes and file the returns to the IT department by March 31, 2017 by paying penal tax.

Well equipped

The Chief Commissioner said the department is equipped with new tools to trace the black money transactions but there was no target as such and no figure has been given to them. “We are working closely with other enforcement teams of different departments on this issue,” he said.

With regard to deposits made up to Rs.2.5 lakh in individual accounts, he said that bonfide persons need not worry but money deposited with malafide intentions would be checked for. “There is no need for any panic, we have certain information about some accounts including Jan Dhan accounts and they will be receiving notices,” he said.

Income Tax department has the “ability to do its job” and “huge capability” to scan through the transactions and bank deposits and if necessary, it would approach the Government for more personnel, he said. answering a question whether it has the wherewithal to take up the investigations on such a large scale.

No prosecution

Under PMGKY, people with accounted for money should first deposit the money whether in cash, cheque, demand draft or electronically in any bank where direct tax payments are accepted, fill and sign up a proof of declaration available on the IT Department website. Tax too should be paid through the bank.

Fifty per cent money is taxed, 25 per cent has to be kept without any interest rate for four years and rest can be utilised. However, any money obtained from money laundering or any other criminal activity would not be accepted. “Complete confidentiality will be maintained and they will be exempt from punishment of any law. Total immunity was not available in Income Disclosure Scheme (IDS),” explained Mr. Kumar.

Pointing out that “only 50 per cent black money is being taxed” under the scheme, the Chief Commissioner said with the strengthened IT Act the consequences would be 75 per cent to 85 per cent tax has to be paid along with prosecution with punishment up to seven years in jail if unknown income is not declared in the returns.

The department has time of 21 months from March 2017 to complete its investigations. Chief Commissioner (Adm) M. Ravindra Sai was also present.

Give information

Chief Commissioner of Income Tax-Hyd Sushil Kumar said that Any citizen was welcome to write to the department to give information about black money at blackmoneyinfo@incometax.gov.in.

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