Source: Business Standard, Nov 17, 2016
Mumbai: The Income-tax department has issued letter to dozen of religious and charitable trusts, asking them to furnish details of ‘cash balances’ as on November 8, following the demonetisation of Rs 500 and Rs 1,000 currency notes.
The notices are being sent under Section 133(6) of the Income Tax Act, 1961, which empowers the I-T authorities to compel banks and other authorities to furnish information which could be useful in connection with any pending proceeding or enquiry.
According to notice, the trust and societies has been asked to submit cash balances as per their books of accounts as on 31 March up to 8 November to this office,” it said. “In the backdrop of this demonetisation of old currency notes, the department is also aware of the pressure or temptation that may be there on trusts and societies to accommodate others,” it noted.
Citing the deposits made in banks after November 8, it said that ” deposits shall be part of scrutiny by the department after 30 December.The notice also advises the management of such institutions not to deal with Rs 1,000 and Rs 500 notes, by either accepting cash or paying in cash for any of your activities after November 8, 2016.