IT wing unearths wilful default by cooperative bank causing loss to exchequer

Press Trust of India

Chennai

The Income Tax department has unearthed a “willful default” by a Tamil Nadu based cooperative bank causing losses to the exchequer of several crore rupees, sources said on Friday.

According to the department’s Intelligence and Criminal Investigation wing, financial institutions, banks, and cooperative banks are supposed to inform the department of cash deposits and interest paid to customers in the form of a Statement of Financial Transactions (SFT).

However, the cooperative bank in Pudukottai district was not sending the details of the interest paid to customers, based on the deposits for the last four years, sources said.

“In this case, the bank did not disclose the interest paid to the customers. It has come to our notice that there may be a loss of about Rs 1.5 crore every year.” they said.

A 10-member team of the department along with police personnel then conducted a survey on Thursday.

“According to the Income Tax Act and Rules, the financial institutions including cooperative banks are statutorily obliged to file details of cash deposits by customers above certain limits and fixed deposits of above Rs 10 lakh in the form of Statement of Financial Transactions,” the sources said.

The cooperative banks should inform the name, PAN number, and account details of those customers who have conducted such financial transactions to the department, they said.

As the bank did not respond to any of the communications sent by the department, the on-the-spot survey was conducted. Failure of the financial institutions to submit the requisite data or defecting data results in loss of revenue to the exchequer, they said.