IT Department Tightens Screws Further?

Until now, the government is saying that the accounts with less than 2.5 Lakhs limit will not attract any Income Tax Scrutiny but then the government is ensuring a lowering of the threshold for the inquiry to 2 Lakhs. This is a bid to ensure that the banking system is not misused to launder black money after the demonetization.

[m9ad]

We are told that the Income Tax Department has written to banks asking for details of accounts at specific branches, particularly those in tier-II and tier-III cities that have witnessed abnormal jumps in deposits, even though the deposited amount is around Two Lakhs.

Of the Rs 15.4 lakh crore of currency accounted for by the canceled Rs 500 and Rs 1,000 notes, Rs 12.44 lakh crore or 80% has been deposited. The government is of the opinion that the dormant, benami and no-frills accounts are being used to park unaccounted money.