The banks have to also report to the government on the Jandhan accounts of the poor if they are used to convert black money into white
New Delhi : Notwithstanding the Finance Ministry’s notification that deposits of the scrapped Rs 500 and 1000 notes up to Rs 2.50 lakh in the bank accounts will not be reported to the Income Tax Department, the taxpayers will have to explain the large cash deposits in a new feature introduced on the tax filing website
The I-T Department has decided to monitor all bank accounts linked to an individuals Permanent Account Number (PAN) by monitoring the deposits one makes in various banks or accounts. It will thus catch those trying to dodge by splitting deposits to escape the provision of the cash deposits of only over Rs 2.50 lakh brought under scanner. Sources said the banks have been asked to keep an eye on all accounts, big or small, as some with huge black money may try to launder their money through different means.
The banks have to also report to the government on the Jandhan accounts of the poor if they are used to convert black money into white.
Any deposits in such accounts that do not match the average transactions over the past six months will be put under scrutiny.
These decisions were taken on the recommendation of the Special Investigation Team (SIT) on black money in a letter sent to Finance Minister Arun Jaitley by its heads Justices M B Shah and Arijit Pasayan, welcoming the demonetisation and suggesting some more concrete steps to ensure nobody with black money is able to launder through various means.
They suggested a need to keep a watch on the bank accounts at different levels over the next few months.
Sources said the government has taken note of the crooks passing on money to the Jandhan bank account holders to put it in their account.
Since the PAN card is mandatory for any deposit of Rs 50,000 or more, these crooks are making the poor deposit say only Rs 49,000 and then get it back by the poor withdraw it. They said the banks have been asked not to allow withdrawals from such accounts if they were earlier dormant or without any such large transactions.
