Govt may issue advisory to I-T dept on cash deposit scrutiny 

The government is looking to issue an advisory to tax officials directing them to exempt investigating cash deposits below a threshold, in an attempt to curb harassment by officials probing deposits made | The government is looking to issue an advisory to tax officials directing them to exempt investigating cash deposits below a threshold, in an attempt to curb harassment by officials probing deposits made since November 10 — according to a report in The Times of India on Monday. The taxmen are busy estimating deposits of the demonetised Rs 500 and Rs 1000 notes deposited in bank accounts between November 10 and December 30, the report said. The government had earlier assured that cash deposits of about Rs 2.0-2.5 lakh made by housewives, and smaller traders would not be scrutinised. 

The renewed scrutiny comes amid deposits of Rs 30,000 and above made into Jan Dhan accounts which had been lying dormant before November 10, the report stated. Almost the entire 15 lakh crore worth demonetised currency has reportedly made its way back to the bank accounts. Of this amount, tax authorities suspect that nearly Rs 4 lakh crore worth cash deposits may be unnaccounted wealth. MoS for Finance Arjun Ram Meghwal on December 2 informed the Rajya Sabha that on November 8 there were 17,165 million notes of Rs 500 denomination and 6,858 million notes of Rs1,000 denomination. The demonetisation exercise prompted the government to routinely revise the cash deposit and withdrawal limits. The Reserve Bank of India had, in fact, asked banks to keep a record of the deposits made by account holders along with identity details.

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