Latest News

  • Home
  • National
  • Gold demand after Uri, cash advance — how jewellers explained deposits after demonetisation
Gold demand after Uri, cash advance — how jewellers explained deposits after demonetisation
Friday, January 24, 2020 IST
Gold demand after Uri, cash advance — how jewellers explained deposits after demonetisation

Income Tax dept has found several cases in which cash deposits made by jewellers immediately after demonetisation were not commensurate with their income.

 
 

New Delhi: The Income Tax (I-T) department has unearthed many cases of jewellers depositing unaccounted cash just after demonetisation was announced in November 2016, and many of them have come up with unique explanations for the surge in cash deposits.
 
In one instance, a jeweller deposited Rs 9.66 crore in three days after the noteban despite declaring an annual income of only Rs 26 lakh in his income tax returns, according to sources in the finance ministry.
 
Asked to explain the discrepancy, the sources told ThePrint, the jeweller claimed that he received cash in advance from more than 500 people as there was a rise in gold demand — considered a safe investment — after the Uri attacks the same year and the surge in tensions between India and Pakistan.
 
The sources said what made the tax department notice about the anomaly was the fact that the total annual electricity expenses of the jeweller was only Rs 1,474 and also the fact that he failed to show any details of the customers from who he claimed to have received the cash in advance.
 
In one of the deadliest attacks against Indian security forces, terrorists targeted an Army installation in Uri in September 2016, killing 17 soldiers and escalating tensions between India and Pakistan.
 
Jewellers had common explanations for cash deposits
 
Several other cases were found in which cash deposits made by jewellers were not commensurate with the income declared in their annual I-T return filings.
 
A jeweller in Gujarat was found to have deposited more than Rs 4 crore in his bank account after the note ban as against Rs 44,000 deposited in the corresponding period a year ago.

 
 

The Narendra Modi government had scrapped high-value currency notes of Rs 500 and Rs 1,000 denomination on 8 November 2016 and asked people to deposit these notes in their bank accounts by 31 December that year. The move was aimed at checking black money.
 
The government was, however, caught by surprise when more than 99 per cent of the notes were deposited back into the system.
 
The I-T department then started the process of cross-checking high-value deposits with the tax returns filed by individuals, asking them to explain the source of such deposits.
 
The sources said the most common explanation from jewellers was that huge cash deposits were sale proceeds or cash received in advance from customers in the month preceding demonetisation, but they couldn’t support their argument with bills or details of the customers.
 
After demonetisation, the tax department sent notices to lakhs of taxpayers to explain their sources of income for the cash deposits and has even started prosecution in some cases.

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
Here is the full list of 827 porn websites banned by the DoT

While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content. ...

Recently posted . 61K views . 1 min read
 

 Article
Class XII Boys Raped 16-Year-old in Dehradun School After Watching Porn on Phone: Police

The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...

Recently posted . 8K views . 1 min read
 

 Article
Sept 27,2001 Rahul Gandhi and his girl friend Veronique,was arrested in Logan airport in Boston

Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million. Rahul and his girl friend was th...

Recently posted . 7K views . 7 min read
 

 Article
TOP 10 GYM EQUIPMENT BRANDS IN INDIA 2017

True – Tr...

Recently posted . 6K views . 83 min read
 

 
 

More in National

 Article
Govt repeats warning to new tech institutes — don’t try to sound like IIT, IIM, IISc

The rule was reiterated in new guidelines released by the All India Council for Technical Education for the academic year 2020-21. 

Recently posted. 502 views . 0 min read
 

 Article
Budget 2019 highlights: Income tax rebate for individuals earning upto Rs 5 lakh/year

HIGHLIGHTS   --Finance minister Piyush Goyal on Friday presented the much awaited Union Budge...

Recently posted. 607 views . 2 min read
 

 Article
India misleading BRICS, trying to hide its brutalities in Kashmir: Pakistan

Pakistan has blamed Prime Minister Narendra Modi for "deceiving" BRICS nations and claimed that India is "urgently attempting to shroud its brutaliti...

Recently posted. 548 views . 19 min read
 

 Video
This information is also important



Recently posted . 742 views
 

 Video
Pradhan Sevak : Shri Narender Modi



Recently posted . 860 views
 

 Reviews
Top 5 Bestseller Novels in India 2018



Recently posted . 1K views . 35 min read
 

 Article
Delhi University's New Student Body Chief's Marksheet Fake, Says College

Ankiv Baisoya has dismissed the allegation as false and "baseless" and said that his admission to the university was done after proper verification of doc...

Recently posted. 603 views . 1 min read
 

 Article
Formalin Found In Fish In Assam's Guwahati Markets

The presence of formalin content in the fish came to notice after the state health department carried out a laboratory test.  

Recently posted. 573 views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

घर के बाहर दिमाग़ लेकर जाओ, क्योंकि दुनिया एक बाज़ार है । लेकिन घर के अंदर सिर्फ दिल लेकर जाओ क्योंकि वहाँ एक परिवार है ।
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top