Get ready for IT notice if bought a car after Nov 8

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New Delhi, November 26: If you have welcomed a four-wheeled wagon for personalized ferry rides post demonetisation, get ready to answer an income tax notice.

Amid hue and cry for what would come after December 30 from PM’s kitty, cars dealers across the country have been served notice by the income tax department for surging bank deposits and high November sales.

The Income Tax Department has issued the notice to top car dealers across the country and asked them to provide details of all those who booked a vehicle after November 8 when Prime Minister Narendra Modi announced the noteban of Rs 500 and Rs 1000 currency notes.

Cutting the long story short, the income tax department would not only target luxury car customers but every car purchaser after November 8.

As per the sources to media, after examining the list of customers, I-T officials will start issuing tax notices to these customers from January 1 to January 15.

The automobile dealers have already started submitting the desired data from the IT department.

“I-T officials had given notice to us, seeking details of all customers,” said one of the dealers.

He further added: They wanted to check our back dated entries too. The IT 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.

I-T officials also confirmed to the media 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.”

As per one IT official, India has only 24.4 lakh tax payers who declared an annual income of over Rs 10 lakh yet 25 lakh new cars are being bought every year for last five years. He also said 35,000 luxury cars are bought every year. He further questioned buying of a new car by a common man when the average life of a car is seven years.

The IT official said the numbers point to a significant number of people who are liable to pay taxes and they aren’t doing so. So get ready to IT scanner, if you love driving new cars.

Wefornews Bureau

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