Bank Locker Hidden? IT Dept Can Chase You 17+ Years

If you hide bank locker assets from the Income Tax department, you can face criminal prosecution for decades. A recent High Court case shows how non-disclosure of locker contents during a search can follow you — and your family — for 17+ years before getting resolved.

Here's what happened: Punjab & Haryana High Court quashed an income tax prosecution linked to undisclosed bank locker contents after the case dragged on for 17–18 years and the taxpayer settled dues.. The court noted that while settlement payments were made, the Section 245H immunity bar meant the protection from prosecution was not automatically available to the accused.. The prolonged pendency itself became a key factor in the court's decision to quash proceedings, signalling that courts do weigh how long a person has lived under prosecution..

What you should do: Declare all bank locker contents — jewellery, cash, documents — in your ITR this year under the relevant schedule for assets; non-disclosure is a criminal offence, not just a tax shortfall.. If you inherited a locker, consult a CA immediately to value and disclose contents before you access or renew the locker, as undisclosed inherited assets attract IT scrutiny.. If you or a family member already faces an IT notice related to locker contents, check whether a settlement under Section 245H was filed BEFORE prosecution was launched — timing determines your immunity..

Filing a disclosure voluntarily under the IT Act's settlement commission route BEFORE a search notice is issued gives you far stronger protection than settling after prosecution begins — proactive beats reactive every time.

If you're considering settling a loan, our loan settlement guide walks through the process.