On 8th November, the Government recalled 500 and 1000 rupee notes (OHD). Some persons have apparently started using tax exempt trusts to launder their OHD. Or so it would seem.
To prevent this, Income Tax Department is sending notices to all tax exempt trusts. The notices are being issued under sec. 133(6). The Trusts are being asked to submit information on cash balance in hand as on 31-Mar-16 and 8-Nov-16. This will help the Department put a cap on the amount of OHD these trusts can deposit in their bank.
If you don't respond to the notice in time, and yet deposit a lot of OHD in bank, you may face:
1. penalty of Rs. 100 per day under sec. 272A, or
2. Scrutiny of your accounts during assessment.
If you’ve not received the notice yet, don't worry. You soon will!
And even if you don't, stay safe and don't yield to temptation. Any attempt to launder large amounts for others will be easily detected. And you may face scrutiny for earlier years as well.
To prevent this, Income Tax Department is sending notices to all tax exempt trusts. The notices are being issued under sec. 133(6). The Trusts are being asked to submit information on cash balance in hand as on 31-Mar-16 and 8-Nov-16. This will help the Department put a cap on the amount of OHD these trusts can deposit in their bank.
If you don't respond to the notice in time, and yet deposit a lot of OHD in bank, you may face:
1. penalty of Rs. 100 per day under sec. 272A, or
2. Scrutiny of your accounts during assessment.
If you’ve not received the notice yet, don't worry. You soon will!
And even if you don't, stay safe and don't yield to temptation. Any attempt to launder large amounts for others will be easily detected. And you may face scrutiny for earlier years as well.
