Demonetisation: IT Dept slaps 1.16 lakh notices to individuals and firms for suspicious cash deposits

The cat and mouse race is still running high. The IT Department on Tuesday sent notices to individuals and organisations which have made cash deposits of more than Rs. 25 lakhs during demonetisation.

"There are 1.16 lakh people who have deposited more than Rs 25 lakh in cash after demonetisation in old currency notes but still not filed their returns," CBDT Chairman Sushil Chandra told a PTI.

The IT department divided the firms and individuals into two categories. The first category included those who deposited more than Rs 25 lakh and the other comprised of deposits between Rs 10 and Rs 25 lakh.

Even suspicious large deposits by people and companies who have filed their income tax returns are also under strict scrutiny, said the CBDT Chairman.  

The officials have been directed to impose higher tax under section 115BBE (treatment of tax credits) of the I-T Act in cases where black money is detected.

As many as 609 people are facing prosecution under different provisions of IT act. This number is more than double compared to the corresponding period of the previous year.

Conviction rate has also gone up, with courts convicting 43 people of flouting income tax rules.