Now, DeMo ‘defaulters’ on I-T radar

Those who deposited a huge amount of money after demonetization are once again on income tax department’s radar. Thousands of people have received notices who had deposited big amount in last five months of the previous financial year but did not file a return.

Sources said that the IT department has identified such people from the data obtained through banks. Now, it has asked state offices to collect information about IT returns of these people through PCCIT. Five thousand people have been sent notices seeking their information of their IT returns. 

The notice has also mentioned the deadline for filing IT returns but so far no strict action has been contemplated. However, if a timely reply to the notice is not filed, the department will take punitive action as per IT act.

Jaipur alone has hundreds of people who have received this notice. Tax expert says that last date for filing the tax return for individual tax payers and those in audit category was 31 October 2017. Therefore, these people should at least file reply to the notice on time.

After demonetization and GST, the government’s revenue collection has fallen. Hence, it is expected that the IT department will focus on people who deposited huge sums of money. Since, it has data of their deposits, the department is hoping to get revenue from this exercise.

“The It department has indicated that it would be strict with people who deposited huge money but did not file IT return. Hundreds of people have received notice in Jaipur,” said Sandeep Agarwal, advocate and former president of tax consultant association.