29 March 2012
Few of my clients receiving Notice from the income tax department mentioning that thier transactions in the savings bank account Exceeds Rs.10 lakhs and they have to submit PAN and Return of income for the Period in which the transaction exceeds Rs.10 lakhs? Is the AO having any authority to go through the bank accounts of the individual without the knowledge of the Concerned person ? Kindly advice me
29 March 2012
Banks are required to submit an AIR to the Income Tax Department. In this AIR they are required to give details of saving accounts in which cash deposits of Rs. 10 lakhs or more have been made during the year.
So, the AO only has this information. He has NOT gone through the bank accounts. He only has information that such and such person has deposited cash exceeding Rs. 10 lakhs in his bank account.
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