Demonetisation: Tax department chasing 80,000 people for suspicious cash deposit

The IT Department is looking into as many as 80,000 people who had deposited cash during the demonetisation period which did not match their income profile.

Chandra also spoke about enforcement by the IT department after the notes ban declaration by PM Modi. (Image: AFP)

New Delhi: The Income Tax (IT) Department is looking into as many as 80,000 people who had deposited cash during the demonetisation period which did not match their income profile. The tax department has even sent them notices to file their return post note ban, news agency PTI quoted a senior official as saying. He also said that the government would exceed the direct tax collection target of Rs 11.5 lakh crore for the current fiscal. At the inauguration of the India International Trade Fair at Pragati Maidan in New Delhi, the CBDT Chairperson Sushil Chandra said that the department has also identified nearly 80 lakh people who had filed their returns during the past three years but have not done that so far. Further in his speech, Chandra also praised government decision to ban Rs 500 and Rs 1000 notes and said that the November 2016 decision to demonetise high-value currency really helped in increasing the tax base in the country and as well as the net revenue of this country from direct taxes. “If you see, last year contribution of direct taxes was 52 per cent and the contribution of indirect taxes was 48 per cent. This has happened after many years that the contribution of direct taxes is more than the indirect taxes,” he added. When asked about how the note ban helped the taxman, he said, “I would say that the money has now come into bank accounts so it is easy for us to track as to how many persons have deposited the cash without corresponding returns.” Chandra also spoke about enforcement by the IT department after the notes ban declaration by Prime Minister Narendra Modi. He said that the CBDT department has sent emails and SMSes to a large number of people who have filed their returns after this communication. “Around 3 lakh notices were sent to persons who did not file returns post the demonetisation. These are statutory notices. About 2.25 lakh people filed their returns thereafter. In 80,000 cases, where the returns were not filed, the department is chasing and the assessment will have to be framed,” he stated. Apart from the post-demonetisation exercise, the department is also pursuing those who have not filed their returns on time. “About 30 lakh persons who should have filed their returns have not filed it. We are sending SMSes and then notices will be sent if these messages are not acknowledged. First we will send SMSes and we are making assessees aware that your income is liable for tax and you should pay it,” CBDT chief said. Chandra also claimed that the department used non-intrusive methods and hence 86 lakh new returns have been brought to the tax net this year. CBDT has left no stones unturned to make sure that the fiscal revenue collection targets are met by the end of this financial year in March. “We have also identified around 80 lakh persons who had filed returns in last three years but they have not filed it so far. I am expecting large no of returns (in the coming days). In the total 6.02 crore returns filed this year, there are 86 lakh new taxpayers,” Chandra added further.