Tax Investigations Unearth Misuse of Jandhan Accounts
Investigation being conducted by the Income Tax Department across India into the sudden surge in cash deposits in Jandhan bank accounts of poor people have revealed various inconsistencies, the government said Sunday.
After the announcement of demonetization scheme, black marketers are conniving with poor account holders to deposit their black money in Jandhan accounts with the hope to get it back in the form of new currency notes.
India’s Prime Minister Narendra Modi had demonetized currency notes of Rs. 500 and Rs. 1000 on November 8, saying that the step has been taken to check corruption and stop the flow of black money.
As a result, people with black money are exploring new ways to save their cash. The use of Jandhan bank accounts is one of them.
According to the the Income Tax Department, undisclosed money of approximately Rs. 1.64 crore deposited by persons who have never filed returns of income being below the taxable limits, into their Jandhan accounts have already been detected at Kolkata, Midnapore, Ara (Bihar), Kochi, and Varanasi.
According to the government statement, Rs. 40 lakh has been seized from one such account in Bihar. Undisclosed income so detected will be brought to tax as per the provisions of the Income Tax Act, 1961, apart from other actions depending upon the outcome of investigations.
The Central Board of Direct Taxes (CBDT) has urged the account holders not to consent to any kind of misuse of their accounts which would expose them to the dangers of being held responsible for the tax evasion by unscrupulous elements.
