IT dept carrying out raids in Delhi, Mumbai on stashed demonetised notes.

The Income Tax department on Thursday conducted multiple raids in Delhi, Mumbai and other cities in the wake of reports of alleged profiteering and subsequent tax evasion by traders by converting withdrawn currency notes in an illegal manner.

Interestingly, the operations (surveys) were launched in the evening as the taxman was waiting for some hard cash to be accumulated at payment counters.

Officials said the operations were being carried out at least four locations in the national capital, including popular marketplaces like Karol Bagh, Dariba Kalan and Chandni Chowk, three locations in Mumbai and few others in Chandigarh and Ludhiana.

Till reports came in, similar survey operations by IT authorities are also understood to have been launched in two south Indian cities.

Sources said the department had received “actionable inputs” that some traders, jewellers, currency exchanges and hawala dealers were allegedly exploiting the recent currency demonetization of Rs 500 and Rs 1,000 notes and were changing currencies at “discounted” prices, thereby profiteering illegally.

Operations were reportedly planned after the chairman of the Central Board of Direct Taxes, Sushil Chandra, on Wednesday, and asked all investigation units in the country to keep a check on the suspicious movement of huge cash and other illegal transactions leading to tax evasion.

Officials added that almost over 100 tax sleuths along with police officials have been roped in for the survey operations.

At few places, they said, some preliminary documents were seized.

Finance minister Arun Jaitley assured people on Thursday that the IT department will not hound those making small deposits of Rs 500 and 1,000 notes, adding that people with “large amounts of undisclosed monies will have to face the consequences under the tax laws”.

Top IT department officials said the government’s directive to them was “very clear”, saying any instance of tax evasion and black money should be dealt with strictly, especially after two opportunities in the form of a one-time stash declaration window was provided.

In a surprise move, Prime Minister Narendra Modi had on November 8 announced demonetization of Rs 500 and Rs 1,000 notes and introduction of the new Rs 500 and Rs 2,000 ones as a measure of black money in the country.

Courtesy:- Hindustan Times.