IT Department Puts 87,000 Taxpayers Under Scanner For Declining Queries Over Large Deposits During DeMo

Representative image. (Pixabay/Shameersrk)

The income tax department has asked its officials to use ‘best judgement’ assessment on 87,000 taxpayers who deposited large amounts of money into their bank accounts during demonetisation but refused to respond to the queries made by the department on the sources of funds, reports Times of India (TOI).

Under Section 142 (1) of the Income Tax Act, Central Board of Direct Taxes (CBDT) had issued notices to around 3 lakh individuals after demonetisation asking them to furnish details regarding case deposits and Income Tax Returns for 2016-17. However, 87,000 taxpayers who made deposits of over Rs 2 lakh did not reply to the department.

In light of this, the investigation division of CBDT will proactively share updated details of these assessees’ addresses, transaction details and bank account information with the assessing officers. Using this data, officers can verify the cash deposit information and can issue further assessment orders.

Advertisement

Assessing officers also have been asked to do a detailed analysis of assessees’ past I-T returns to check the nature of transactions during demonetisation.

Cast A Wider Net

“These taxpayers are now on the wider radar of the I-T department as the tax officers have been authorised to gather maximum information about them and scrutinise the total income on the basis of such information. In other words, the I-T officer is authorised to assesses the total income of such taxpayers to the best of his judgement,” said Nangia Advisors managing partner Rakesh Nangia to TOI.

Advertisement
Be a Partner, Reader.
Support a media platform that will bring you ground reports that other platforms will try every bit to avoid.
Partner with us, be a patron. Your backing is important to us.

Become A Patron
Become A Subscriber