The Income Tax Department has issued notice to top car dealers across India asking them to provide details of all those who booked a vehicle after November 8, the day Prime Minister Narendra Modi announced withdrawal of Rs 500, 1000 notes.
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Car dealers who have shown high bank deposits and high sales figures in November after demonetisation have been asked by the Income Tax department to submit details of their customers. The income tax department is not only targeting luxury car customers but every car purchaser who got home a new vehicle after November 8.
HERE'S THE UPDATE:
The income tax department has informed car dealers that after examining the list of customers, I-T officials will start issuing tax notices to these customers between 1-15 January.
Auto dealers have already started submitting the asked data to the department.
"I-T officials had given notice to us, seeking details of all customers. They wanted to check our back dated entries. The department feared that there might be customers who had used their black money to purchase cars by November end, but dealers might have shown back dated entry of before November 8," a source from one the car dealers said.
I-T officials have confirmed that "such notices have been sent to car dealers across the country, after seeing high sales figures for the month of November and their bank deposits for that month."
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