The Hyderabad driver has agreed to pay tax and the penalties on the black money in his account.
A cab driver in Hyderabad was questioned by Income Tax officials after Rs 7 crore was deposited in his account in 500 and 1000 rupee notes. The driver has claimed that the money belongs to him and he is willing to pay both tax and penalty on it. But IT officials said he hasn't been able to explain the source of the funds.
The IT investigation wing in Hyderabad had come across the deposit while scrutinising huge cash deposits in the days and weeks post demonetisation.
Investigators said the driver had gradually transferred the amount to a bullion trader in small instalments.
From CCTV footage at the bank, investigators found out two of the driver's suspected associates had deposited the cash in an account at the State Bank of Hyderabad. The men are being questioned by the IT department.
The driver has said he would pay tax under the Prime minister's Gareeb Kalyan Yojana scheme. ''He will have to pay Rs 3.5 crore as tax plus penalty (50 per cent). Another 25 per cent will have to be deposited in the bank for four years without interest,'' an IT officer explained.
Enforcement Directorate officials are also examining the case to see if it is a case of money-laundering.
The account, incidentally, was dormant before the Rs 7 crore deposit. That has also raised suspicion about possible role of bank officials who should have notified the authorities, since all does not seem above board in this case.