IT Investigations detect Misuse of PMJDY Bank Accounts for converting Black Money

Income Tax Investigations Unearth Misuse of PM Jan Dhan Yojana (PMJDY) Bank Accounts; detect conversion of Black Money: CBDT

Investigations by the Income Tax Deptt, of surge in deposits in PM Jan Dhan Yojana (PMJDY) Bank Accounts, has revealed misuse of accounts for conversion of undisclosed black money into white post demonetization. CBDT has warned PMJDY account holders to not to let their accounts being misused to avoid consequences of tax evasion.

CBDT Press Release (Income Tax) dt. 2 Dec. 2016

Investigation being conducted by the Income Tax Department across India into the sudden surge in cash deposits in Jandhan accounts have revealed various inconsistencies. Undisclosed moneys of approximately Rs.1.64 Crore deposited by persons who have never filed returns of income being below the taxable limits; into their Jandhan accounts have already been detected at Kolkata, Midnapore, Ara (Bihar), Kochi and Varanasi. Rs. 40 Lakh has been seized from one such account in Bihar. Undisclosed income so detected will be brought to tax as per the provisions of the Income Tax Act, 1961, apart from other actions depending upon the outcome of investigations.

The Central Board of Direct Taxes, once again urges the account holders not to consent to any kind of misuse of their accounts which would expose them to the dangers of being held responsible for the tax evasion by unscrupulous elements.

CBDT Press Release dt. 8 Dec. 2016

Since the time the Government has alerted people not to allow their accounts, particularly Jan Dhan accounts, to be used by others for the purpose of converting their black money, there has been a considerable decrease in the inflow of funds in Jan Dhan accounts. In the first week after the decision on currency notes was announced, i.e. 8th to 15th November, the total deposits received in Jan Dhan accounts was Rs.20,206 crores. In the second week, between 16th to 22nd November, the flow was Rs.11,347 crores. And in the third week between 23rd to 30th November, it was reduced to Rs.4867 crores.

On 1st and 2nd December, the inflow into Jan Dhan account has now been reduced to Rs.410 crores and Rs.389 crores respectively. The average per account deposit in Jan Dhan accounts is Rs.13,113/- for this entire period from 8th November to 2nd December, which is not alarming, given the need to bring all cash to banks.

The Income Tax Department has identified the local clusters and Bank branches where the inflow of Jan Dhan deposits have been more than normal, in order to investigate money deposits in Jan Dhan accounts which belonged to somebody else.