New Delhi:The Income Tax department today alerted its country-wide investigation units to keep a vigil on suspicious movements of huge cash and bullion in the wake of demonetisation of Rs 500 and Rs 1,000 currency notes by the government.

Officials said the Central Board of Direct Taxes(CBDT) has directed all I-T probe wings across the country to be vigilant and coordinate with local police and other agencies like Enforcement Directorate (ED) to monitor activities of hawala dealers and other traders/entities dealing in big cash and jewellery.

They said the I-T department is “working” on reports of some heavy sale made in the bullion market in western states last night.

“The department is checking if these are regular or distress sales made in the aftermath of the scrapping of the two big denomination currency notes,” they said.

Officials also added that the department will keep a check on the remittances of the old currency in banks and post offices by the way of established mechanisms of getting reports from these financial intermidiaries and the Financial Intelligence Unit.

They added that the government directive is “very clear” to the tax and other enforcement agencies, saying any instance of tax evasion and black money should be dealt with strictly, especially after two opportunities in the form of one-time stash declaration window has been provided.

In a surprise move, Prime Minister Narendra Modi yesterday announced demonetisation of Rs 500 and Rs 1,000 notes and introduction of the new Rs 500 and Rs 2,000 ones with additional security features.

PTI