10 Nov Income Tax Department conducts Raids across Mumbai, New Delhi and Chandigarh…
The Income Tax Department has begun a multi-city crackdown on those taking demonetized currency at a discount, selling gold at premium using old notes and Hawala operators offering foreign currency. Agencies concerned are acting on specific intelligence.
Raids were carried out in Delhi, Mumbai and some cities in Punjab after reports of some traders taking Rs. 500 and Rs. 1000 notes; selling gold at up to Rs. 50,000 per 10 grams, and dollar touching Rs. 100 in local Hawala markets surfaced.
“Raids have been carried out on specific intelligence”, said a senior government official.
Interestingly, the operations (surveys) were lunched from the evening as the taxman wanted some hard cash to get accumulated at the payment counters to make the action effective.
Officials said that operations were carried out at at least four locations in the national capital, including popular market places like Karol Baug, Dariba Kalan and Chandini Chowk; three locations in Mumbai and a few others in Chandigarh and Ludhiana.
Till reports came in, similar survey operations by Income Tax authorities are also understood to have been launched in two south Indian cities.
Sources have said that the department had received “actionable inputs” that some traders, jewellers, currency exchanges and Hawala dealers were allegedly exploiting the recent currency demonetization of Rs. 500 and Rs. 1000 notes, and were changing currencies at “discounted prices”, thereby profiteering illegally.
They said that operations were planned after CBDT Chairman Sushil Chandra yesterday asked all the investigating units in the country to keep a check on suspicious movements of huge cash and other illegal transactions, leading to tax evasion.
Officials added that over 100 tax sleuths along with police officials have been roped in for survey operations.
At a few places, they said, preliminary documents have been seized.
The finance minister, Arun Jaitley, today assured people that the taxman will not hound those making small deposits in Rs. 500 and Rs. 1000 notes, adding, however, that people “with large amounts of undisclosed monies will have to face consequences under the new tax laws”.
Top Income Tax department officials had yesterday said that the “government’s directive to them is very clear”, saying that any instance of tax evasion and black money will be dealt with strictly, especially after two opportunities in the form of one-timne stash declaration window has been provided.
In a surprise move, Prime Minister Narendra Modi, had, on November 8, announced demonetization of Rs. 500 and Rs, 1000 notes, and introduction of new Rs. 500 and Rs. 2000 notes with additional security features.
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