Gold Smuggling : More Raids ecxpected soon

The Income Tax Department’s investigation wing recently conducted long-awaited raids in Shimla, revealing a staggering discovery. Three prominent jewellers were found to have accumulated illegal income totaling over Rs 8.5 crore. Post-demonetization, these jewellers accepted banned currency notes of Rs 500 and Rs 1,000, selling gold at inflated rates and then backdating sales entries to deposit this cash in their accounts. They went as far as creating fictitious names to conceal the identities of customers who exchanged old notes and avoided the mandatory PAN number collection and one percent tax collection at the source.

Their modus operandi involved restricting individual sales below Rs 2 lakh to sidestep the obligation of collecting PAN numbers and evading TCS. These businessmen also made substantial unrecorded investments in properties, including new hotels. Intriguingly, bank accounts were registered under fictitious names, prompting an investigation into potential involvement of certain bankers.

This significant revelation not only exposed the malpractices of these jewellers but also hinted at a broader probe, extending its scope to other jewellers in Shimla, Kangra, and Una.

The department is gearing up to take action against more offenders involved in amassing black money and engaging in currency conversion during demonetization. The crackdown is expected to intensify in the near future.