Demonetisation effect: Taxmen come knocking with 90 searches in 12 days

Taxmen have been keeping busy these days, especially since the government announced its demonetisation move on November 8.

Income tax officials have been looking to crack down on illegal ways of using the old Rs 500 and Rs 1,000 notes, and have increased the number of searches conducted in the last 12 days.

The department usually conducts 30-35 searches and surveys in a month, but the last 12 days alone have seen 90 such operations. “Our main focus has been to block attempts to legalise black money since Rs 500 and Rs 1,000 were demonetised on November 8,” said a top source in the tax department.

Real estate, manufacturing, trading and educational institutions have emerged as the focus areas for the department, sources said.

“We are also keeping a close watch on bank deposits. Any deposit that is does not match the person’s income will attract tax, penalty and interest and could also lead to imprisonment,” said the source quoted above.

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