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MULTI-CITY CRACKDOWN - I-T Dept Raids Those Taking Delegalised Notes at Discount

Income tax authorities have been keeping a close tab on reports in this regard

The income tax department launched a multi-city crackdown on those taking demonetised currency at a discount, selling gold at premium in exchange of old notes and hawala operators offering foreign currency at a premium.

Raids were carried out in Delhi, Mumbai and some cities of Punjab after reports surfaced of traders taking ` . 1000 notes, selling gold . 500 and ` at as much as ` . 50,000 per 10 gram and dollar touching as high as 100 rupees in the hawala market.

Traders on the radar have been asked to furnish details of cash in hand as on November 8, when the government announced the scrapping of . 500 and ` ` . 1000 notes.

“Raids have been carried out based on specific intelligence,“ a senior government official told ET.

Tax authorities have been keeping a close tab on reports in this regard and have been di rected to be alert as people attempt to get rid of large amounts of unaccounted for cash in the demonetised notes.

Nearly ` . 14.2 lakh crore worth of . 500 and ` ` . 1,000 notes are in circulation that have ceased to be a legal tender. This money cannot be used to purchase goods.

Those holding this currency can de posit it in their bank accounts or have it converted into valid currency after furnishing their identity proof.

Anyone depositing cash in excess of known sources of income will face penalty. This has prompted those hoarding cash that isn't accounted for to explore other avenues to launder black money.

Traders have been asked to furnish certified cash in hand details by the tax authorities to ensure that sales after November 8 are not shown as those carried out prior to that day.Traders in prominent Delhi markets like Karol Bagh, Dariba Kalan and Chandni Chowk and three locations in Mumbai and a few others in Chandigarh and Ludhiana were raided.


11TH NOVEMBER,2016 THE ECONOMIC TIMES, NEW DELHI
 

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