New Delhi: The Income Tax Department has started sending notices to the depositors of the large number of unfit notes issued during the delisting. Income tax officials were told not to issue any action-based notices after the outbreak of the corona epidemic. The number of notices sent by the Income Tax Department is expected to increase in the coming days as that cutback has been lifted. On November 8, 2016, Prime Minister Narendra Modi announced the abolition of the old 500 and 1,000 rupee notes. People were given a few days to replace the old notes and get new ones. At the same time, many people deposited large amounts of unfit notes in various bank accounts to turn black money into white. The Department of Revenue is investigating cases where there is a discrepancy in the amount of non-performing deposits. Depositors are being asked to indicate the source of the deposit. Those who cannot satisfy their income sources will be asked to file income tax returns and pay taxes, including interest. Notices of deposits during the delisting period can be sent by March 31, 2023.
Direct tax collection fell by 20 percent in the second quarter of this year. The number of notices is expected to increase in the coming days as the ban on sending notices was lifted on September 16. The GST department’s intelligence agency is also sending notices to depositors about the timing of the delisting. This power is vested in Section 40 of the Central GST Rules. The agency is receiving information from the Income Tax Department, banks and financial institutions. “It simply came to our notice then. Cases that have raised suspicions about banks and financial institutions have also been referred to the Income Tax Department. Under Section 14 of the Income Tax Act, the Department of Revenue may send notices for re-examination within four years.
