Demonetization anniversary: I-T gears up to catch the "big fish"
What's the story
As the demonetization anniversary nears, I-T is actively engrossed in bringing into its net the "big fish" owning unexplained wealth.
Of 18L suspicious money deposits in bank accounts post demonetization, 12L have responded to I-T notices explaining their wealth.
Of the remaining 5-6L, 70,000 deposited over Rs. 50L in old-notes but didn't respond to I-T's questions or filed returns.
What is I-T department planning?
Targets
Who are under the scanner?
Apart from the "big fish", there are also smaller depositors who have one more chance, an official said. "If they don't respond (again), formal notices will start going from January."
For these two cases, assessment is to be completed in two years.
Also under scrutiny are about 22,000 "erratic" tax returns; these people either didn't file returns earlier, or revised their returns after demonetization.
Information
What has I-T been doing till now?
Since months, I-T teams in Ghaziabad have been busy scanning through millions of data entries and building a case. Notices to the 70,000 primary targets will be dispatched this week. "We were waiting for people to file their returns before sending notices," an officer said.
Challenges
Will this plan work smoothly?
There's been widespread criticism that demonetization did nothing to eliminate black money. But the government maintains results will be seen over time: the revenue department will now weed out defaulters.
However, this will reportedly need time. "Will the department retain focus for 10 years?" an official asked.
But some say results are already visible: PANs have increased and more returns were filed this time.
Action
In the meantime, govt clamping down on shell companies
Meanwhile, the government recently banned 58,000 bank accounts of 35,000 shell companies which collectively deposited and withdrew Rs. 17,000cr after demonetization.
Action taken include restrictions on sale and transfer of these companies and their assets, as well as barring their directors from banking transactions.
So far, 2.24L suspicious companies have been struck off, most of which have been inactive since at least two years.