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Rs 8 cr in old notes exchanged by co-op societies in Mangaluru

Rs 8 cr in old notes exchanged by co-op societies in Mangaluru

Mangalore Today News Network

Mangaluru, Nov 20, 2016: In a swift and agressive move, 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 1000 currency notes after November 8.

co-op societie...Checks were also set up at cooperative banks. In one case in Mangaluru, the tax department has found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in the city. Officials said the taxman has begun a country-wide enquiry 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 beyond Rs 2.5 lakh.

"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 on November 8," they said.

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. "If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years," an I-T department notice issued in this regard said.

In the wake of the demonetisation declared by Prime Minister Narendra Modi on November 8, the department has also stepped up its survey operations against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money.

The department has also recently issued notices to hundreds of charitable and religious organisations in the country enjoying exemptions on tax paid to inform it about their cash balances as of November 8 when the government demonetised Rs 500 and Rs 1,000 currency notes.

The notices were issued in order to keep a check on possible "accommodation" of black money in old currency by way of making charitable contributions or donations to these organisations.

 Income Tax (IT) officials have raided homes, offices, and banks in Mangaluru and Bengaluru and have recovered huge amount of money and gold, in wake of the demonetization move by the central government.  According to sources and media reports, IT officials have raided five cooperative banks in Mangaluru.

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Comments on this Article
jayanth.b, udupi Mon, November-21-2016, 1:16
Nice way to exchange
Sunitha M, Kuloor Mon, November-21-2016, 12:12
Malp[unakulu enchala malpuveru
Nikhil Kumar, Manipal Sun, November-20-2016, 11:22
The people who were dealing with business with out a genuine IT wil have to face the consequences.
Sathish Kumar, Belthangady Sun, November-20-2016, 11:18
The Modi’ move has on large effected the builders and businessmen. We appreciate his move but for time being we might face some problems .
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