IT dept finds discrepancies in prominent TN-based bank

CHENNAI: The Income-Tax Department has found that a prominent Tamil Nadu-based bank had not filed a Specified Financial Transaction (SFT) in respect of Cash deposits of over Rs.2,700 crore involving more than 10,000 accounts.

Apart from this, the department also found discrepancies in specified credit card payments involving total transaction value of over Rs.110 crore; dividend distribution of more than Rs.200 crore, and shares issued of over Rs.600 crore.

"Further, SFTs already filed by the Bank were found incomplete in several respects," an official release stated.

The Income Tax department has been focusing its efforts on promoting voluntary compliance and seeks information about financial transactions of taxpayers from reporting entities, such as Banks, Forex Dealers, Sub-Registrars, etc.

"While most Reporting Entities are voluntarily complying with the statutory requirements of filing correct and complete Statements of Specified Financial Transactions (SFTs), defaults have been noticed in some cases. Recently, the department carried out verification of a prominent Bank based in Tamil Nadu, to address reporting entity compliance issues, during the course of which, several discrepancies were found," an official release stated.

The bank had failed to report major transactions which included Interest paid of more than Rs.500 crore, time deposits, Cash deposits and withdrawals in current accounts, etc.