Officials from the Income Tax Department are going to begin recovery proceedings against some 65,000 assessees who made deposits totalling Rs 10 lakh or more during demonetisation in their bank accounts, but did not submit tax returns for the assessment year 2017-18, reports The Hindu BusinessLine. Penalties will also be levied against the persons in question.
Initially, there were an estimated three lakh such non-filers, but after notices were sent out by the tax authorities, most of them complied, such that now only 65,000 are remaining.
The Income Tax Department has exhausted all usual means of getting these remaining persons to file returns. “Even notices pasted on the wall of premises of last available address, but there is no response yet. Meanwhile, based on past record, tax officials completed assessment of these assessees and now process to be initiated for recovery,” said a senior official from the Finance Ministry.
It is estimated that assuming a deposit of Rs 10 lakh, the non-filers on average would be liable to pay up around Rs 6.5 lakh each, considering a 30 per cent tax rate, four per cent cess and a 100 per cent penalty.