Deposits above Rs 2.5 lakh to face tax, penalty on mismatch
As per the decision, reports of any deposit above the threshold of 2.5 lakh rupees during the period will be sent to the ministry. These reports may bring penalty to the account holder.
Union Government on 9 November 2016 announced that cash deposits above 2.5 lakh rupees threshold under the 50-day window could attract tax plus a 200 percent penalty in case of income mismatch.
It seems that the decision was taken to make sure that people would fail in converting their black money into the white one.
The decision was announced by the Revenue Secretary Hashmukh Adhia. Highlights of the decision
• The ministry would be getting reports of all cash deposited, above a threshold of 2.5 lakh rupees in every account, during the period of 10 November to 30 December 2016.
• The tax department would do matching of this with income returns filed by the depositors and suitable action may follow.
• Any mismatch with income declared by the account holder will be treated as a case of tax evasion.
Earlier, the Union Government on 8 November 2016 allowed citizens to deposit in old currency of 500 rupees and 1000 rupee denominations in their bank accounts. These banknotes were declared invalid.