Income tax department lens on deposits under small savings schemes

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Key Points

"We have detected many benami cases where deposits were made above 50 lakh and no return was filed and on further investigation, documents were traced to people who cannot have such income," a senior official told ET..

The income tax department has detected 'benami' deposits of 50 lakh and above in small saving schemes such as the Kisan Vikas Patra and National Savings Certificate (NSC) in the name of minor children or household help...

The Centre has asked post offices to re-initiate the know-your-customer (KYC) process for all existing accounts with deposits of 10 lakh and more..

The official said such evasion will be difficult going ahead as the Centre recently made reporting norms more stringent for all investments in post offices under Prevention of Money Laundering Act (PMLA) rules.. For fresh deposits of 10 lakh and above, under the tightened norms, proof of source of income, permanent account number (PAN), Aadhaar, and other relevant KYC documents have to be submitted...

Additionally, through the May 25 master circular, the DoP mandated that all deposits of 10 lakh and above in post office schemes and all accounts related to politically exposed persons (PEPs) residing outside India will fall under high-risk category...

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