Government of India on Wednesday night warned everybody that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200% penalty in case of income mismatch.
“We would be getting reports of all money deposited during the time period of Nov 10 to Dec 30, 2016, above a threshold of Rs 2.5 lakh in each account. The Income tax department would do matching of this with income returns filed by the depositors. And appropriate action can also follow,” Revenue Secretary Hasmukh Adhia stated on Wednesday night.
Any mismatch with income declared by the account holder can be dealt with as a case of tax evasion. “This will be treated as a case of tax evasion and the tax amount plus a penalty of 200 % of the tax payable could be levied as per the section 270(A) of the Income Tax Act,” he stated.
Government has allowed all citizens to deposit in their bank accounts old money of Rs 500 and Rs 1,000 denominations, which were declared invalid inside the country’s biggest crackdown on black money, corruption and counterfeit notes, among November 10 and December 30.
Adhia stated small businessmen, housewives, artisans and workers who had a few cash lying as their savings at home have to now not be worried about any tax branch scrutiny. “Such group of people… need now not worry about such small amount of deposits up to Rs 1.5 or 2 lakh since that it might be under the taxable income. There can be no harassment by way of the Income Tax department for such small deposits made,” he stated.
On people resorting to shopping for of jewellery, he said person buying jewellery has to provide the PAN number. “We’re issuing instructions to the field authorities to check with all of the jewellers to ensure this requirement isn’t compromised. Action can be taken against the ones jewellers who fail to take PAN numbers from such buyers. Whilst the cash deposits of the jewellers might be scrutinised against the sales made, whether they have taken the PAN number of the purchaser or not will also be checked, “he added.
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