Hyderabad: The income-tax department’s Financial Investigation Unit will keep an eye on deposits and exchange of Rs 500 and Rs 1,000 denomination currency notes from Thursday.
Bankers as a norm ask customers depositing more than Rs 50,000 to submit PAN details as per the guidelines issued by the Reserve Bank of India.
A source from the I-T department said that the FIU would gather information of all deposits of more than Rs 2 lakh. “As per the I-T Act, we concentrate on bank deposits of more than Rs 10 lakh in a year. In the current situation, the FIU will look out for deposits of more than Rs 2 lakh. The government has directed the I-T department to coordinate with bankers,” the source said.
Charted accountant P. Jitender Reddy said that the I-T department would issue notices in cases of suspicious deposits under Sections 68 and 69 of the I-T Act but not to all those who deposit more than Rs 2 lakh.
“The notice will seek explanations from the depositor about the source of the money. If they submit proper ledgers, receipts and sources, the department may not impose penalty, but will insist that the depositor files returns along with 30 per cent tax in case of non-filers,” he said.
Mr Reddy said that there was no cap on keeping money at home or transporting it as long as one had proper documents and evidence.
