How the Income Tax Department get to know about money even if you are having multiple bank accounts?
Nobody is above law. As per the constitution of India, it is pertinent to pay the income tax as per the income slabs prescribed by the Ministry of finance or face the legal consequences. But many can be of the opinion that how come the income tax department will come to know about the money kept in discreet accounts. Equipped with technology even a needle in a sack could be easily found out by the Income-tax department. There are various means and ways adopted by the Income-tax department to find such malfunctions.
Banking is a part and parcel of everyone’s life and also the backbone of income tax department. Without a PAN card, no one can open a bank account in India. PAN card is the unique permanent account number of each citizen in India. This is issued only by the Income-tax department.
There is a provision as per Income tax rules to open a bank account without PAN card. It is done by declaring Form 60 with the income tax authorities. The Form 60 declaration should be given to the bank in place of PAN card for opening the account. It has various limitations including deposits above Rs.50,000/- and many more to submit Form 60 detailing the source and other relevant details of the transaction.
Ways of income tax department to find money in multiple accounts:
Either way, whether in terms of PAN card or Form 60 the income tax department will be notified of all the transactions done in any number of accounts within seconds. All will be cross-checked with the income tax returns wherein the income and expenses along with relevant bank accounts are mentioned.
Hence it is better to reveal all the bank details and money in them rather than getting punished by fining and other ways by the income tax department.