Acting swiftly, the Income-Tax Department has issued hundreds of notices seeking “source” of funds from individuals and firms who have deposited huge amounts of cash in banks using the scrapped Rs. 500 and Rs. 1,000 notes after November 8.
Officials said the department has begun a country-wide inquiry and has issued notices under section 133 (6) of the Income Tax Act (power to call for information) in various cities and towns of the country.
They said the notices were issued after banks reported to it certain cases of “unusual or suspicious volumes of cash deposits” in their accounts, primarily those beyond Rs. 2.5 lakh.
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The notices issued by the department cite the date and amount deposited by an entity in the old currency in the bank as it goes on to seek “supporting documents, books of accounts and bills to explain the said cash deposits” from them. — PTI