Who Will Face Problems Post Demonetisation?

I-T department today said deposits up to Rs. 2.5 lakh can be easily done without any questions and only those accounts will be investigated which do not match the tax returns.

Income Tax Department has segregated several kinds of deposits and large deposits like more than Rs. 1 crore which do not match with income tax returns will be taken for "layer enforcement". Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said at CII post-Budget seminar that there is no reason to worry for any “genuine person”

He said that the department has collected a large data on deposits made in banks after the imposition of demonetisation by the government on November 8.

Data Bank has been used by the tax department to run all deposits exceeding Rs. 5 lakh made during the 50-day process provided post demonetisation to get rid of junked notes.

He also said that deposits of Rs. 3 lakh are "justified" if the person has an annual taxable income of Rs. 10 lakh.

The tax department will not scrutinise those companies which show a cash in hand in balance sheet of Rs. 10 lakh and have deposited Rs. 5 lakh. But if the person has deposited Rs. 5 lakh and has not filed return of last three years then he/she might face problems.

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