IT Department has discovered benami deposits of Rs.50 lakh or more in modest savings programmes such as Kisan Vikas Patra and National Savings Certificate in names of underage children or household assistance.
Reetu | Jun 3, 2023 |
Income Tax Department eyes on Deposits under Small Savings Schemes
The Income Tax Department has discovered benami deposits of Rs.50 lakh or more in modest savings programmes such as Kisan Vikas Patra and National Savings Certificate (NSC) in the names of underage children or household assistance.
According to authorities, the government has begun sending notice in cases where the deposits are worth Rs.1 crore or more.
The government has directed post offices to re-start the know-your-customer (KYC) process for all existing accounts with deposits of Rs.10 lakh or more. These accounts will be classified as low risk, high risk, or extremely high risk based on the information provided.
“We have detected many benami cases where deposits were made in excess of Rs.50 lakh and no return was filed,” a top officer told. “So far, we have sent approximately 150 notices where deposits exceed Rs.1 crore.”
According to the individual, the number of such incidents is far larger than this, and additional notifications will be given. The agency is using data analytics to detect such incidents.
According to the cited official, compliance standards for modest savings programmes are easier, taking into account the problems experienced by lower and middle-income groups. However, certain non-resident Indians (NRIs), high net-worth individuals (HNIs), and even trusts have abused this, according to the source. Currently, NRIs and Hindu Undivided Families (HUFs) are not permitted to invest in modest savings programmes.
The Department of Posts instructed post offices to flag and freeze accounts if clients do not comply with KYC criteria in a master circular issued on May 25.
The Officials stated such evasion would be tougher in the future because the Centre has increased reporting requirements for all investments in post offices under the Prevention of Money Laundering Act (PMLA) laws.
Under the tightened norms, proof of source of income, permanent account number (PAN), Aadhaar, and other applicable KYC papers must be presented for new deposits of Rs.10 lakh and more.
Furthermore, the DoP ordered in the May 25 master circular that any deposits of Rs.10 lakh or more in post office schemes, as well as all accounts associated to politically exposed individuals (PEPs) residing outside India, shall be classified as high-risk.
In the case of certain account holders, the KYC procedure will need to be redone every two years. At the time of account establishment, post offices must classify customers based on risk characteristics.
However, the official mentioned above stated that post offices have been instructed not to harass clients.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
