Income Tax department has taken action against 14 cooperative banks in as many searches in Karnataka for not sharing information with regard to deposits when it found Rs 7,636 crore of amount in 80 banks during this year reports Press Trust of India.
IT sources say holding back information amounts aiding and abetting tax evasion.
IT officials say erring banks will have to face penalty each day. The dept has sent 2,300 letters asking depositors to pay taxes on their money, they say.
Taxmen have also urged RBI and Registrar of cooperative , Karnataka to take necessary action against the erring banks.