‘No need for panic over Income Tax dept’s cash vigil’

Ranchi: Even as the Income Tax department is keeping a strict vigil over high-volume cash transaction ahead of the Lok Sabha elections, the department is ensuring that normal activities of people, including businessman, are not affected.
Principal commissioner of income tax department R N Sahay on Wednesday assured that there is no need to be afraid of carrying cash provided that the person has proof of the source and destination of the amount. “The money should be disclosed,” he said.

Sahay added: “The department is providing adequate time to the owner to give proof of the source of the cash. For evidence, one could provide withdrawal slip from the bank. The department is checking passengers at the airport only when there is some suspicion or intelligence input.”

The PCIT statement comes days after the Federation of Jharkhand Chambers of Commerce and Industries asked the I-T department to adopt a rational approach towards movement of cash. FJCCI president Deepak Maroo said: “There are many instances when we have no option but to deal in large amounts of cash. If a person is able to explain the source and the legitimacy of transaction, he should be not be harassed,” he said.

The I-T department keeps a watch on movement of cash during elections to prevent diversion of illegal money for luring voters. The step is necessary to conduct free and fair elections. The department is coordinating with various agencies, including the administration, Enforcement Directorate and National Investigation Agency, in this regard. Inter-departmental coordination is also helpful in keeping a check on terror funding.

The department has also set up air intelligence units at airports and appointed nodal officer with a team of staff in every district. The department said so far they have seized Rs 80 lakh after the owners failed to give a satisfactory reply. Of this amount, Rs 30 lakhs was seized from Pithoria, Rs 10 lakh from Ranchi airport, Rs 15 lakh from Giridih, Rs 5 lakh from Jamshedpur and the remaining Rs 20 lakh from other places.