• There have been crucial Amendments in taxation rules by the Central Board of Direct Taxes (CBDT)
  • Now all transactions for cash deposits of Rs 12.5 lakhs or more between November 9 and December 30, in one or more current accounts of a person will be brought under scrutiny-earlier this amount was Rs 50 lakhs and above, as part of the Annual Information Report (AIR )
  • All such individuals would be asked to submit details of their source of income
  • Banks have been asked to hand over details regarding all these transactions
  • Earlier, in a notification on November 15, the CBDT had mentioned that banks would be asked for details regarding deposits over Rs 2.5 lakhs in saving accounts
  • As a stringent measure, it has also been specified that the permanent account number – PAN – be taken as a compulsory requirement in the case of any deposits more than Rs 50,000 on any single day.
  • The same rule regarding PAN also applies on deposits more than Rs 2.5 lakhs between November 9 and December 30 – this amount was Rs 10 lakh before the announcement of the demonetization process
  • Under normal circumstances, the AIR is submitted by any individual only on certain specific transactions carried out in a financial year
  • Further, banks submit these only once in a year
  • In the current wave of the demonetization, however, all banks would be expected to make reports of this specific period of the changes brought in the economy.
  • The IT department is sparing no effort in nailing down tax evaders – any discrepancy could put the individual in the net of a 200 percent
  • It is known that the extra vigilant IT department has been keeping a strict watch on all transactions being carried out after November 10 – when the banks opened after two days of non-functioning
  • Besides this, all immovable Property transactions over Rs 30 lakhs would also be scrutinized and all sale transactions of Builders are going to be watched, especially the ones carried out post November 9
  • Interestingly, the IT department has even been keeping a close watch on religious institutions and charitable trusts – they have been told to account for all cash proceedings between March 31 and November 8, and then the ones after November 9
  • Raids on Jewellers has been one of the highlights of the past nine days.