Gujarat: I-T department likely to send notices to 5,000 tax payers for depositing cash worth 1 crore

Income Tax Department in Gujarat is likely to send notices to around 5,000 tax payers in the state for depositing cash more than Rs 1 crore post demonetisation. Prime Minister Narendra Modi announced ban on old Rs 500 and Rs 1000 notes on November 8.

"After demonetisation, (the) I-T department has sent notice(s) to more than 3000 tax payers in Rajkot only. Including Ahmedabad, Surat and Vadodara, total figure could cross to 5000,' Gujarat Congress CA Cell President, Kailash Gadhvi said.

According to sources, banks were expected to share details of large cash deposits after December 1. But, I-T department has already started to retrieve this information early.

People failing to explain their income could be asked to pay 85 per cent penalty.