Businessmen, politicians, and top names in the film industry have come under the scanner of the Income Tax Department as officials armed with provisions in the recently passed Finance Bill 2017 prepare to take action against black money in the State.
At least 25 cases of large and unaccounted for transactions have been detected in bank accounts during the demonetisation period between November 9 and December 30. The department has set up an exclusive benami prohibition unit in Kochi to look into this, a top I-T official said.
“Action will be taken after reviewing the fraudulent transactions. Already the department is flooded with hundreds of complaints about black money transactions and officers have been asked to scrutinise each of them. On inquiry, some complaints were found to be false,” he said.
About 40,000 people in the State have been identified by the department since their transactions did not match their tax profile. Most of them have been informed via SMS and e-mails seeking to file their explanation online.
Data of persons who have deposited ₹5 lakh or more and suspicious transactions below ₹5 lakh and up to ₹3 lakh have already been verified.
The official said action would be initiated after gathering details of these accounts, especially some of the newly created and suddenly active accounts that had for long remained dormant. A new provision empowered officers to raid homes and offices without having to provide any reason.
The intelligence wing of the department has listed Kerala among the States where huge tax fraud and money laundering take place in the real estate sector. Property flipping involving purchasing a property and artificially inflating its value has been reported at several places.
Another biggest tax evasion is selling property at undervalued rates. All types of dealings come under black money transactions.
“The department has got evidence of land registered in the names of drivers and even domestic helps. The Prohibition of Benami Property Transactions Rules allow the provisional attachment of properties. So far we have not done any attachments in the State. However, the process of investigation has begun,” he said.
