After demonetization, Income Tax department acting swiftly to server notices individuals and firms who have deposited huge amounts of cash in their bank accounts using banned 500 and 1000 notes.
IT department issued notices under section 133 (6) of the Income Tax Act (power to call for information) seeking the source of the funds.
Notices are being served to all those whose cash deposits are beyond Rs.2.5 Lakhs. The notices are being issued where the department feels the cash deposits made in the demonetised currency.
In this regard, An Income Tax notice to a firm of Sikkim asking the source of high denominations notes, deposited in the bank.