Income Tax Sleuths Unearth Innovative Methods of Laundering and Transportation of Cash at Mumbai, Nagpur and Ahmedabad


MINISTRY OF FINANCE

INCOME TAX DEPARTMENT

Income Tax Sleuths Unearth Innovative Methods of Laundering and Transportation of Cash at Mumbai, Nagpur and Ahmedabad

Income tax investigations at Mumbai led to the revelation of a syndicate of ground level operators active in converting banned currency notes into legal tenders for a commission. As part of the operation to nab the culprits, Income Tax Investigation Directorate sent out a few decoy customers seeking to exchange banned currency notes into new notes. The syndicate, acting through its mediator, agreed to the exchange for a 35% commission. The exchange was to take place at the mediator’s residence. The mediator was caught red handed and new currency notes aggregating to Rs. 29.5 lakh was seized.

It has now emerged that the syndicate comprised of many ground level operators (GLOs) – mainly local youths led by a master aggregator and a mediator. The mediator would seek customers. The GLOs would withdraw new currency in their own names or names of friends and family within the prescribed weekly limits, pass it on to the aggregator for a commission and deposit the old notes in their own accounts or accounts of family or friends in small sums.

Another investigation into cash deposits in a bank account in Nagpur revealed that the account holder had no knowledge of the existence of her account where Rs. 3.29 crore had been deposited after 8th November, 2016. Enquiries by the Department revealed 6 more such accounts in her and parents’ names. The 7 accounts were opened and operated by unknown persons to launder cash of Rs. 4.25 crore. Evidences gathered suggest that copies of PAN and other personal documents that she handed over to a friend few years back were used to fraudulently open these accounts in Kolkata, which were operated to channel suspicious funds to 8 beneficiaries, who are now being investigated.

In an interesting case at Ahmedabad, discrete intelligence gathered by the IT investigation team led to a survey at the premises of a transporter in the late hours of 3rd December, 2016. Twenty four cartons in the godown of the transporter meant for transport to Delhi were found. Lorry receipts declared these to contain fire crackers. When the cartons were opened and examined, two cartons were found to conceal currencies in the denomination of Rs.100 aggregating Rs. 27 lakhs. On interrogation, the consigner claimed that the cash was on account of sale of fire crackers being transported to Delhi for purchase of fire crackers. The cash was seized on 5th December, 2016.

DEPOSITING OR ENCASHING RS.500/- AND RS.1,000/- NOTES. BEWARE !!! THE INCOME TAX DEPARTMENT IS WATCHING YOU


As per the IT department, the physical cash circulation in India is Rs 17 lakh crore and out of this, 88 per cent is Rs 500 and Rs 1,000 notes. Official data suggest that 40 per cent of black money is generated in real estate, while stock market and bullion transactions are other big sources.

  1. The Income Tax department will keep a check on individuals who exchange cash amount of Rs 2 lakh and above.

  2. The objective is to make Indians tax compliant, eventually leading to higher revenues for the government.

  3. The IT department has been asked to keep record of every individual, their PAN card details, and tally it with tax filing.

  4. Accordingly, the department will impose penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.

 

REALTOR UNDER THE INCOME TAX SCANNER AT BANGALORE


POLITICALLY POWERFUL REALTOR GROUP, WHICH ACQUIRED HUGE STRETCH OF PROPERTIES, EVER SINCE, THE ARRIVAL OF NEW GOVERNMENT IN THE STATE IS UNDER THE SCANNER OF ENFORCEMENT DIRECTORATE AND SCRUTINY BY THE INCOME TAX DEPARTMENT.

THE AGENTS, DIRECTORS, SELLERS AND BUYERS ARE IN THE NET.

IT IS SAID THAT THE CATCH WILL BE HUGE WITH LOTS OF INPUTS FROM DIFFERENT SOURCES.

IT IS ALSO SAID THAT THIS NEW GROUP EMERGED, ALL OF A SUDDEN FROM THE BRINK, RAISING SUSPICION.

BBMP BANK ACCOUNTS FROZEN BY THE INCOME TAX DEPARTMENT ON MONDAY


The notorious BBMP is in the news again as usual for its mismanagement and non compliance. The income tax department on Monday froze 40 bank accounts of the Bruhat Bangalore Mahanagara Palike (BBMP) for failing to respond to a tax notice of Rs 31.5 crore in connection with transfer development rights (TDR) certificates issued by the civic agency for having neglected and ignored to respond to the notices of the Income Tax Department, as BBMP felt and behaved in the same manner with all other departments, but got the BOOT from IT department. But, the balance in all the accounts were just Rs2 Crores only.

Nothing serious happened, as usual, some cheques got bounced and BBMP is not bothered about it.