Representational Image
Representational Image

The Income Tax Department on Thursday conducted multiple raids in Delhi, Mumbai and other cities in the wake of demonitisation of Currency.

These raids came soon after people made deposits in banks following sudden ban on Rs 500 and Rs 100 currency notes.

On Wednesday, Union Finance Ministry had warned of strict actions against those who will be found depositing undisclosed money after banks opened on Thursday.

Also Read: Read: What Will Happen To The Old Useless Rs 500 and Rs 1000 Notes

The government too on Wednesday night had given a strict warning that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch.

“We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account. The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,” Revenue Secretary Hashmukh Adhia said.

Also Read: Know What To Do With Your Rs 500, Rs 1000 Note

Millions of anxious people armed with Rs 500 and 1,000 notes mobbed banks across India on Thursday to exchange or deposit them after the government decided to take the bills out of circulation.

People jostled to get lower denominations or new currency notes as a sweeping cash crunch caused all round chaos and inconveniences to buy even simple daily essentials.

Serpentine queues started forming near banks in Delhi and adjoining Noida and Gurgaon as early as 6 am, hours before they opened amid security to prevent any law and order situation.