Taxman is watching: I-T dept sends notices to those depositing huge cash

[V.Balasubramani]

Share:

Facebook X (Twitter) WhatsApp Email Share Link

No escaping the taxman…

The I.T. Department is watching….

Will they have enough man-power to monitor ...?
[h=1]Taxman is watching: I-T dept sends notices to those depositing huge cash[/h]
The income-tax department has issued notices seeking ‘sources of income’ of hundreds of individuals and firms who have deposited huge amounts of cash in banks after the government’s announcement to scrap Rs 500 and Rs 1,000 notes on November 8.

Officials said the department has initiated a country-wide enquiry under Section 133 (6) of the Income Tax Act (power to call for information). The notices were issued after banks reported ‘unusual or suspicious volumes of cash deposits’, most of them beyond Rs 2.5 lakh.

Cash deposits above Rs 2.5 lakh could attract tax and penalty and authorities might take away 90% of the money if there is an income mismatch, according to a government decision.

“The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies...,” an official said.

The notices cite the date and amount deposited by an entity in old currency. It goes on to seek “supporting documents, books of accounts and bills to explain the said cash deposits” from them.

“If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,” a notice said.

The department has also stepped up survey operations against real estate players, bullion traders and suspected hawala operatives to check the illegal use of scrapped currency and the subsequent generation of black money.

The department is closely watching cooperative banks after it found out that old currency worth Rs 8 crore was exchanged by five societies, which had accounts in a cooperative bank in Mangalore.
It has also issued notices to hundreds of charitable and religious organisations to check on possible accommodation of black money through donations to these organisations. Charitable and religious organisations have been asked to report their cash balances.

Source: http://www.hindustantimes.com/busin...g-huge-cash/story-CAFwjmqHHrecKtp64Loy7J.html

 

[auh]

Laughable.

Everybody knows that the IT department easily ranks among the topmost corrupt entites in India. The AOs and the CITs mainly waddle in black money... now the scenario is similar to that of a thief catching another.

 

[V.Balasubramani]

Laughable.

Everybody knows that the IT department easily ranks among the topmost corrupt entites in India. The AOs and the CITs mainly waddle in black money... now the scenario is similar to that of a thief catching another.

Everyone is entitled to have his own opinion.

But I disagree with such a sweeping statement.

One cannot assume that everyone in the Department of Incometax is corrupt.

There are outstanding Officers, staff and peons who work with determination and with an attitude to be different, I mean with upright honest and integrity.

Most know that they are respected to be honest and have tasted the pride

And they also know many of their subordinates and colleagues are following them

Above all they are all gverned by 'Conduct Rules'.

Last but not least, there are Officers and staff who diligently follow Chanakya’stheory of Kosha MoolaDandahwhichmeans 'revenueis the backbone of administration’ and which message continues to be relevant todayas it was thousands of years ago.

Jaisa Raja Vaisi Praja...

Demonetisation adds to income tax department's workload, even as it struggles with a staff crunch

The Centre wants all accounts that get deposits of over Rs 2.5 lakhs investigated. Tax officials hope there isn't a deadline.

Excerpts:

Demonetisation burden

The shortage of manpower in the department is a factor in the slow process. According to KKN Kutty, president of the Central Government Employees Federation, the income tax department has a sanctioned strength of 72,000 and a 30% vacancy at the moment.

The demonetisation move means that the income tax department will have to scrutinise a large number of accounts. The process would involve issuing notices, analysing the replies in each case and then recommending action. This burden is over and above the department’s usual workload as a result of people filing their income tax returns at the end of the financial year in March.

“We are hoping that officials will not be given a deadline to finish the scrutiny of bank accounts,” said Kutty.

A senior tax official said that while the government wanted all accounts with deposits of Rs 2.5 lakh and above between November 9 and December 31 to be investigated, in implementation, this might not be the case. Usually, the department goes after high-value declarations and does not bother those with low incomes. In the case of post-demonetisation deposits too, the department might prioritise high-value deposits. “In any case, our task looks Himalayan, given the existing infrastructure,” the official added.

Source: http://scroll.in/article/821881/dem...load-even-as-it-struggles-with-a-staff-crunch

 

[prasad1]

It is true that there are honest Babus in Indian Government. They might be a minority.

http://timesofindia.indiatimes.com/...rruption-within-ranks/articleshow/6321571.cms
It is 2010 article.

Does political corruption in India take place because there are always some civil servants who are willing to collaborate in it? Or, is the lure of post-retirement assignments a major reason for spinelessness of the senior civil servants?

The affirmative answer to these questions has come from none other than bureaucrats themselves. Recently, they made these facts and many others -- usually, a subject of whisper in corridors of power -- known in as many words while participating in a first ever government-sponsored `perception' survey of civil servants.

Of the 4,808 officers (from IAS, IFS, IPS, IRS and six other top central services), an overwhelming 80% of them agreed that the "political corruption takes place because there are always some civil servants willing to collaborate in it". Since their identities were kept confidential, the respondents were candid about a number of issues.

A 2016 article states:

A THOROUGH data mining of the past corruption cases of senior bureaucrats stored in agencies such as Central Bureau of Investigation (CBI) or Central Vigilance Commission (CVC) will reveal some kind of a pattern of corruption by senior bureaucrats in the government, both at the Centre and the states. But an IAS officer claiming to have 10 years of experience revealed a lot early this week while answering a question on Quora, a popular question-answer website. The question was — what is the lifestyle of an IAS officer? The post, seen so far by over 2.3 lakh visitors, went viral in social media sites on Monday. There, the officer mentioned about…

http://www.babusofindia.com/2016/08/corruption-in-senior-bureaucracy-free.html

 

[V.Balasubramani]

Action to weed out corrupt officials initiated......but they went scot free that is a different story ..

And for that who is to blame...?

Acche Din Finally! NAMO Busts Den Of Corruption In Income-Tax Dept And Sacks Top IRS Officers For Harassing Taxpayers


The Narendra Modi Government has sent a bone-chilling warning to all income-tax officers that they will have to pay a steep price if they continue with their nefarious activities of harassing taxpayers with the illicit objective of extorting money from them.

It may be recalled that in just the past few weeks, several officials of the high rank of Chief Commissioner of Income-tax were caught red-handed by the CBI for extorting money from hapless taxpayers on the threat of launching bogus cases against them.

After Sailendra Mamidi and Anil Goel, both high-ranking Chief Commissioners of Income-tax, Santosh Jangre, the Joint Commissioner of Income-tax, Mumbai, was arrested by the CBI for alleged corruption (See Despite “Anti-Corruption Pledge”, Income-Tax Dept Remains Den Of Corruption. After Two CCsIT, JCIT Held For Corruption).

Source: http://www.itatonline.org/info/acch...cks-top-irs-officers-for-harassing-taxpayers/

 

[V.Balasubramani]

It is reported that this Department functions with 30% vanacy position.

This news item is only a tip of the ice berg ... self-explanatory.

Now who is to blame....?

Top Income Tax officers leaving job to join Private Sector

In the income-tax department, he was instrumental in unravelling the infamous “bogus sale and lease back” deals, a dubious accounting jugglery for claiming depreciation on nonexisting assets.

When asked about the reason for his exit, Mr Bal said: “Due to personal reasons”. But he added that the IRS is a prestigious service and that he had enjoyed his tenure. It is learnt that atleast half a dozen companies are currently wooing him. Nishi Nair, commissioner, income-tax, too, has resigned. Ms Nair is reportedly taking up an overseas project with the private sector.

A 2004 batch IRS officer, Saraswati Padmanabhan, currently a member of the investigation wing of the department, has put in her papers too. She is planning to join a non-government organisation. Her resignation has stirred a controversy as she has put in her papers immediately after sending a tax notice to a Hollywood megastar. However, both Ms Padmanabhan and her seniors in the department, have denied any link with her notice to the star and her resignation.

See more at: http://taxguru.in/income-tax/top-in...join-private-sector.html#sthash.vPn9LyYH.dpuf

 

[tbs]

hi

we need more I T manpower as well as CBI too....even bank employees are frustrated....

 

[prasad1]

I heard from an acquaintance in India, that he deposited Rs 5 lacks in cash to his account. I asked him about being investigated by IT. He laughed and said if at all there is a notice it is not coming before next July 2017. He said he has a friend in the IT, who will arrange everything. His answer was Prasadji "sub fix ho jayega".

 

[V.Balasubramani]

Government tightens its grip. Person(s) who allows his or her Bank Account to be misused for this purpose can be prosecuted for Abetment under Income Tax Act.

Putting a friend's black money into your account? Government warns of strict action under Income tax Act.


Beware - converting someone's black money could land you into trouble.

Ever since PM Modi announced the decision to demonetize Rs 500 and Rs 1000 notes, individuals have been trying to come with new ways to fool the system. The government has has however announced than anyone who inadvertently helps anyone launder black money could be in trouble. The government put out a statement that those individuals could be prosecuted under the Income Tax Act.

They cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30. The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.

Read more at: http://www.dnaindia.com/money/repor...of-strict-action-under-income-tax-act-2274708

 

[V.Balasubramani]

Beware taxevaders ! Evasion can cost you hefty punishment

Tax evasionhas always been a criminal offence in India. Few know that this can even landyou in jail. Persecution in any related offence can come under Chapter XXII ofthe Income-tax Act,1961.

Under thisact, 3-6 months of rigorous jail will be given to offenders under these cases:

Read morer at: http://www.oneindia.com/feature/beware-tax-payers-evasion-can-cost-you-hefty-punishment-2033802.html

 

[V.Balasubramani]

This too happens...

கோடி கணக்கில் சேர்த்த பள்ளி ஆசிரியர் கைது

பர்ஹாம்புர்: ஒடிசா மாநிலத்தில், கிராம தொடக்கப் பள்ளி தலைமையாசிரியர், 2 கோடி ரூபாய்க்கும் மேல், வருமானத்துக்கு அதிகமாக, சொத்து சேர்த்ததாக கைது செய்யப்பட்டார்.

முதல்வர் நவீன் பட்நாயக் தலைமையிலான, பிஜு ஜனதா தளம் ஆட்சி உள்ள ஒடிசாவின் பர்ஹாம்புரில் உள்ள ஒரு பள்ளியின் தலைமையாசிரியராக பணியாற்றி வருகிறார் திலிப் குமார் ஆச்சாரியா.

புகாரின் அடிப்படையில், லஞ்ச ஒழிப்பு போலீசார் நடத்திய சோதனையில், அவர், பல்வேறு வீடுகள், நிலம், தங்கம் என, 3.4 கோடி ரூபாய் அளவுக்கு சொத்து சேர்த்துள்ளது கண்டுபிடிக்கப்பட்டது. இதில், வருமானத்துக்கு அதிகமாக, அவர், 2 கோடி ரூபாய் சேர்த்துள்ளதாக கூறி, அவர் கைது செய்யப்பட்டுள்ளார்.

Source: http://www.dinamalar.com/news_detail.asp?id=1653074

 

[V.Balasubramani]

[h=1]I-T widens search operation, eyes big cash deposits[/h]NEW DELHI: The income-tax department has widened its search and survey operations across the country and has instructed its officials to clamp down on people having benami properties and question those found depositing banned currency notes in banks in big numbers without known sources of income.

The I-T department's directorate of criminal investigation has a wealth of information, including names of front entities of hundreds of high net worth individuals who, over the years, have laundered illicit wealth by investing in movable and immovable assets. Their transactions have been monitored by I-T intelligence for a long time and the agency will crack down on those who have acquired assets beyond known sources of income.

The newly enforced Benami Property Transactions Act carries a penalty and imprisonment of up to seven years. The I-T department is responsible for enforcing the Act and attachment of properties under it.

Citing official sources, PTI reported that the I-T department had detected over Rs 200 crore in undisclosed in come after it conducted over 80 surveys and 30 searches in suspicious transactions after the demonetisation of Rs 500 and Rs 1,000 notes
Under the Benami Property Transactions Act, a taxman can confiscate and prosecute both the depositor and the person whose illegal money he or she has "adjusted" in their account. The Central Board of Direct Tax es has asked I-T officials to closely monitor all such transactions. All such cases can be prosecuted under the aforementioned Act.

"The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account it has been deposited shall be categorised under this law as a benamidar," a senior official said.

Source: http://timesofindia.indiatimes.com/...es-big-cash-deposits/articleshow/55532728.cms

 

[auh]

Everyone is entitled to have his own opinion.

But I disagree with such a sweeping statement.

One cannot assume that everyone in the Department of Incometax is corrupt.

There are outstanding Officers, staff and peons who work with determination and with an attitude to be different, I mean with upright honest and integrity.

Most know that they are respected to be honest and have tasted the pride

And they also know many of their subordinates and colleagues are following them

Above all they are all gverned by 'Conduct Rules'.

Last but not least, there are Officers and staff who diligently follow Chanakya’stheory of Kosha MoolaDandahwhichmeans 'revenueis the backbone of administration’ and which message continues to be relevant todayas it was thousands of years ago.

Jaisa Raja Vaisi Praja...

This is called twisting the statement. Nowhere did I mention that all the officials are corrupt. All I have said is that the IT department is easily one of the most corrupt in our country. Had one interacted with them and known the operational nuances, one would be able to appreciate the truth in my statement.

It does not matter if one officer is honest, there is another who is tainted and can get the job done.

A small drop of venom in a jar of jug is sufficient...

 

[V.Balasubramani]

It does not matter if one officer is honest, there is another who is tainted and can get the job done.

A small drop of venom in a jar of jug is sufficient...

And if that is case, there can be no Department without corrupt officials and black sheep in our 70 years history

And there is no country under the sun without minimum corruption.

All that matters is volume ....

All out efforts are being made to eradicate corruption

Surgical strike against Black Money is only a start in that direction.

 

[auh]

And if that is case, there can be no Department without corrupt officials and black sheep in our 70 years history

And there is no country under the sun without minimum corruption.

That is not the point under discussion.

All that matters is volume ....

Can you elaborate on what you mean by this?

 

[V.Balasubramani]

Can you elaborate on what you mean by this?

It is the pereceived level of corruption which differs country to country..

[h=1]India ranks 76 in Corruption Perception Index[/h]
The country’s 2015 corruption perception score remains the same as last year’s – 38/100 – showing lack of improvement. India shares its rank along with six other countries: Brazil, Burkina Faso, Thailand, Tunisia and Zambia. China fared worse than India and Brazil at rank 83 with a score of 37. TI has also noted that Pakistan is the only country among the SAARC countries, to have improved its score this year, though its rank remains poor at 117.

Link: http://www.thehindu.com/news/intern...orruption-perception-index/article8158407.ece

 

[V.Balasubramani]

Beware.....Taxman is awake and alert too.....

I-T search at Engg college finds Rs 8 crore deposited in 400 accounts

Chennai: Employees Were Promised Commission

Income Tax department officials on Saturday conducted searches at a well-known engineering college in the city following reports that the owner had deposited `8 crore in unaccounted cash in the accounts of employees. The searches came in the wake of information provided by some of the employees who had deposited the cash as `instructed'.The huge sum, I-T officials found, was deposited in nearly 400 bank accounts.

Since November 8, when Prime Minister Narendra Modi announced that ``500 and `1000 currency notes wo and `1000 currency notes would no longer be legal tender, rumours of owners of colleges and hospitals using their employees bank accounts to deposit black money have been doing the rounds.

“A few days ago we got information from some employees of the college saying their bank accounts were used by the college owners to deposit cash. Based on this we conducted the searches,“ a senior I-T official told TOI.

Some employees who gave the information to the I-T department, however, could not say to whom the cash belonged to. “Before going to the college we asked the employees about the cash and who deposited it but there were not able to answer. At the college on Saturday we found the owner had used 400 bank accounts to deposit the entire amount in cash,“ said the official. The cash was not shown in any account maintained by the college, he added. “The college accounts could not be balanced with the cash deposits. Therefore it is black money which has been deposited in the employees' accounts. The employees were told that they would be given some commission and after sometime the money would be taken back,“ said the official.

Read more at: http://epaperbeta.timesofindia.com/...earch-at-engg-college-finds-Rs-20112016003027

 

[GANESH65]

IT raids Janardhan Reddy's Bellary mining company after daughter's Rs 500 crore wedding

The Income Tax department on Monday raided former BJP minister Gali Janardhan Reddy's Obulapuram mining company in Bellary.
Reddy had caught the attention of the Income Tax officials for allegedly spending Rs 500 crore after his daughter's wedding.
Reddy had earlier been arrested in 2012 in illegal mining cases. Since his release on bail last year, Reddy was busy planning his daughter's nuptials that took place at the Palace Grounds in Bengaluru on Wednesday.
Brahmani Reddy tied the knot with Rajeev Reddy, son of Panyam Vikram Deva Reddy, an Andhra Pradesh businessman with mining interests in Africa.
There was considerable celebrity presence at the wedding with guests like Punith Raj Kumar, Ravichandran, Vishal Krishna, Suman, Sharath Babu and performances from Telugu stars Rakul Preet and comedian Brahmanand and Kannada star Yash at the reception.
WATCH: A big fat wedding in Bengaluru amid cash crunch

​

Janardhana Reddy had reportedly recreated the entire Vijayanagara empire on a whopping 36 acres of land in Bengaluru.

According to reports, Reddy believes that he's the reincarnation of the 14th century Vijayanagara King Krishnadevaraya.
Reddy's daughter Brahmini tied the knot with Rajeev Reddy, son of a Hyderabad businessman. The marriage pavilion resembled the Vijaya Vittala temple in Hampi.
The whole decoration was done by famous and costliest Bollywood art directors and hundreds of labourers have been working on it.
Reddy had recreated a village, filled with elephants, chariots and camels, to put up a traditional front.
While the Indian government implemented the demonetisation scheme overnight on November 8 in a bold move to tackle the stream of black money, Reddy's extravagant wedding ceremony was bound to grab the attention of the income Tax officials.

 

[V.Balasubramani]

நகை வாங்கியோருக்கு விரைவில் 'நோட்டீஸ்!' பட்டியல் தயாரிக்கிறது வருமான வரித்துறை

நகைக் கடைகளில், நவ., 8ம் தேதி இரவு, இரண்டு லட்சம் ரூபாய்க்கு மேல் நகை வாங்கிய, நுாற்றுக்கும் மேற்பட்டோருக்கு, வருமான வரித்துறை, 'நோட்டீஸ்' அனுப்ப முடிவு செய்துள்ளது.

இதுகுறித்து, வருமான வரித்துறை அதிகாரிகள் கூறியதாவது:சென்னை, பாரிமுனையில் உள்ள நகைக் கடைகளில், நவ., 8ம் தேதி இரவு, பலர், அதிகளவில் தங்க நகைகள் வாங்கியது தெரிய வந்துள்ளது. அவர்களில், 'பான்' கார்டு இன்றி, சிலர் நகைகளை வாங்கி குவித்துள்ளனர். சிலர், பல லட்சம் ரூபாய்க்குநகைகள் வாங்கியது போல, கணக்கு காட்டப்பட்டு உள்ளது.

அவர்களின் விபரங்களை, நகைக் கடைகளில் பதிவான, கண்காணிப்பு கேமரா பதிவுகள் மற்றும் கடையில் உள்ள ஆவணங்கள் மூலமாக திரட்டியுள்ளோம். தவறு செய்ததாக கண்டறியப்பட்டுள்ள, நுாற்றுக்கும் மேற்பட்டோருக்கு, விளக்கம் கேட்டு, விரைவில், 'நோட்டீஸ்' அனுப்ப உள்ளோம்.இவ்வாறு அவர்கள் கூறினர்.

Source: http://www.dinamalar.com/news_detail.asp?id=1653937