Ujjain: If you have deposited cash more than Rs 5 lakh with any financial institution or you have received interest above Rs 50,000, then you may be in trouble. The Director of Income Tax ( Intelligence), Bhopal may issue you a notice seeking clarification for the transaction.
This special cell has recently gathered information from the banks and other banking companies and issued notices at large. People who did not provide their Permanent Account Number to the banking companies are main targets. According to tax consultant KK Atal, people are amased that how income tax department came to know about such transactions.
Actually Section 133 ( 6) of the Income Tax Act empowers the income tax authorities to collect useful information from any ‘ person’ as described under Section 2 ( 31) of the Act. Persons in banking sector are also included in the category. Same type of information may be obtained from registrars of immovable properties, cooperative societies, RTO, etc.
Exercising the powers vested under Section 133 ( 6) of the Act, at present intelligence department, Bhopal has been working on big banking transactions.Accordingly notices are issued to the persons who have deposited Rs 5 lakhs or more in cash or received interest of Rs 50, 000 or more. Reply to such notices should be given within ten days from the date of receipt otherwise the case may be referred to the Jurisdictional Assessing Officer who may scrutinize the same, Atal added.
( 1) Source of big deposits, purchases of immovable properties and luxury vehicles should be maintained and explained.
( 2) Transactions should be disclosed in the income tax return.
( 3) Permanent account number should be provided.
( 4) Income- tax return should be filed within time.
Result of failure to explain the source of deposit/ investment
I t will be treated as your income of the current year and income tax and penalty both will be collected. In some cases prosecution may also be initiated.