Demonetisation: Misuse of bank account for black money deposit to invite govt action

The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes

By: PTI | New Delhi | Updated: November 24, 2016 1:45 pm
demonetisation, rs 500 rs 2000, black money, india black money, Jan dhan, jan dhan account, jan dhan account black money, indian express, indian express news A Bank Employee counting the bundles of the received currency of old 1000 & 500 notes at cash counter at a Punjab National Bank branch in Chennai. (Source: PTI/Senthil Kumar)

Government Friday cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30. The directive comes against the backdrop of reports that some are using other persons’ bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.

WATCH VIDEO: Over 30 Times Surge In Jan Dhan Deposits: Find Out How

The government had earlier said deposits up to Rs 2.50 lakh in bank accounts would not come under tax scrutiny as it is within the tax exemption limit. In the case of Jan Dhan account, the holder can deposit up to Rs 50,000. However, the income tax department has noted that people are under impression that no action will be taken for deposits up to Rs 2.50 lakh during November 9-December 30.

The ministry said “such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act”.

The government has earlier said black money deposited in bank accounts during the 50-day period will be subject to tax, interest and 200 per cent penalty. It asked people not to be lured into conversion of black money and become a partner in the crime of converting black money into white through this method.

“Unless all citizens of the country help the government in curbing black money, this mission of black money will not succeed,” the official statement said. It also asked people to provide information of such illegal activities to the I-T department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized.

“Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it,” it added. Following the demonetisation announcement of November 8, people have been queueing up in front of banks to convert and deposit the now-defunct 500 and 1,000 rupee notes.

The tax department has already made quoting of PAN mandatory if cash deposits during the 50-day period aggregate Rs 2.5 lakh or more in bank accounts.

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First Published on: November 18, 2016 4:13 pm
  1. J
    Jayo khan
    Nov 18, 2016 at 11:32 pm
    Now everything is been done and now FM is warning them. Guidelines should have been clearly issued on 8th making which accounts can deposits, withdraw, exchange how much every time period. Every time govt is changing its mood .
    Reply
    1. M
      MyTake
      Nov 18, 2016 at 6:38 pm
      Freeze the money in the account until verified and proper justification is given. On failing transfer the amount into children welfare fund!
      Reply
      1. S
        Sameer.
        Nov 18, 2016 at 3:06 pm
        If bank managers with black money borders misuse illiterate persons account, how it will be detected and punished?
        Reply
        1. C
          Casb
          Nov 18, 2016 at 1:06 pm
          Neither the ruler have shame nor the people. I bet people will again vote this govt. to power.lt;br/gt;this govt. will the sell only the dreams of people.
          Reply
          1. A
            Ankush
            Nov 20, 2016 at 11:27 pm
            One of the best action taken by government
            Reply
            1. A
              anon
              Nov 18, 2016 at 8:18 pm
              I am all for this demonetization but it should help bring down the property prices. There will obviously be a huge opposition to this as a lot of powerful people have a lot to lose. But Modi should plummet on regardless. The voiceless people of India are with him if he succeeds and this will reflect in the elections.
              Reply
              1. A
                arc
                Nov 18, 2016 at 12:33 pm
                Empty threat. The govt can do off all. There's no law that can stop an account holder to deposit money. Let the ic govt specify the law and the clause.
                Reply
                1. A
                  arc
                  Nov 18, 2016 at 2:38 pm
                  Let the govt act against the poor Jan Dan account holders. Then see what happens.
                  Reply
                  1. A
                    arc
                    Nov 18, 2016 at 2:34 pm
                    Now the poorest of the poor who were forced to open accounts are being threatened by Modi govt. And not a word against those whose black money is being deposited in Jan Dan accounts. This uneducated prime minister is a pitable fool, doesn't know which poor man in league with which black mone man is doing the surgical strikes against his black money plan. Happens when economy is used as political tool.
                    Reply
                    1. A
                      arc
                      Nov 18, 2016 at 3:02 pm
                      Ha ha. Now blame the Babu. Which Babu in India takes decisions independently? And where is Jaitley?
                      Reply
                      1. R
                        Raj
                        Nov 18, 2016 at 2:56 pm
                        As I said, any meaningful attempt to eradicate corruption will inevitably affect every common man as this is a deep ailment. So, bare with it. Track every individual who withdraws money completely after deposit.
                        Reply
                        1. B
                          Baskar
                          Nov 19, 2016 at 1:44 pm
                          I think Bank has to get a written obligation / additional signature when people are depositing more than 10 lakhs. That they wilfully face the consequences of action from IT.
                          Reply
                          1. C
                            chipku says
                            Nov 18, 2016 at 2:50 pm
                            you are so unaware of reality. PM opened jandhan with zero balance making it available for poor people. Removing black money is not easy job. People hide it. Banning high denomination notes without giving any notice was only way. Next in line is Benaami property. If you dont support such drastic measures we will suffer more for 100 years. and probably be like russia and greece bankrupt and disintegrated.
                            Reply
                            1. D
                              dd
                              Nov 18, 2016 at 12:57 pm
                              Dear Modi saheb / RBI Governer / Mere Pyare Babus....Just offer the people are standing line for others...They are very efficient spy...1. Take Money 2. Deposit to Bank 3. Disclose their name to govenment ( Now they can't withdraw it for long time..they will earn intrest on deposit ) 4. If it proved 90% is account holders. 5. Black money owner has to pay 200% panelty of deposit amount 12% intrest earned by account holder 10 year jail... Also offer WAR room phone number to call for information...
                              Reply
                              1. D
                                dd
                                Nov 18, 2016 at 12:36 pm
                                Dear Modi saheb,....Just offer the people are standing line for others...1. Take Money 2. Deposit to Bank 3. Disclose their name to govenment ( Now they can't withdraw it for long time ) 4. If it proved 90% is yours. 5. Black money owner has to pay 200% panelty of deposit amount 10 year jail....
                                Reply
                                1. D
                                  dd
                                  Nov 18, 2016 at 12:38 pm
                                  Who ever give information about black money to governemt should be offered 90% of total amount protection....A person with black money should be punished very hard like 200% of total fraud amount 10 yers in jail
                                  Reply
                                  1. D
                                    dd
                                    Nov 18, 2016 at 4:05 pm
                                    CROOKS like you has created this situation...Now everyone has to go through pain just because of CROOKS like you...
                                    Reply
                                    1. D
                                      dd
                                      Nov 18, 2016 at 2:31 pm
                                      Dear Modi saheb Just offer the people are standing line for others...They are very efficient spy...1. Take Money 2. Deposit to Bank 3. Disclose their name to govenment ( Now they can't withdraw it for long time..they will earn intrest on deposit ) 4. If it proved 90% is account holders. 5. Black money owner has to pay 200% panelty of deposit amount 12% intrest earned by account holder 10 year jail... Also offer WAR room phone number to call for information... If they don't do it they have to answer for high balance and return government help they have taken in the past...
                                      Reply
                                      1. D
                                        dd
                                        Nov 18, 2016 at 4:12 pm
                                        Dear Modi saheb Just offer the people are standing line for others...lt;br/gt;They are very efficient spy...lt;br/gt;1. Let them Take Money lt;br/gt;2. Let them Deposit to Bank lt;br/gt;3. Ask them to disclose ownr's name to government ( Now they can't withdraw it for long time..they will earn monthly 12% interest on deposit without panelty ) lt;br/gt;4. If it proved credit 90% is account holders accountlt;br/gt;5. Black money owner has to pay 200% penalty of deposit amount 12% interest earned by account holder 10 year jail... lt;br/gt;Also offer WAR room phone number to call for information... lt;br/gt;If account holder don't do iy, Account holder has to answer for high balance and return government's help they have taken in the past with penalty...
                                        Reply
                                        1. D
                                          dd
                                          Nov 18, 2016 at 4:55 pm
                                          Government might offer 65% Tax on disclose of More than 1 crore ( up to 10 crores) 75% for unlimited crores and they have to disclose their account to public for their life...Government has to disclose these names to public as a GIFT
                                          Reply
                                          1. R
                                            Rahul
                                            Nov 18, 2016 at 11:28 pm
                                            Madcap bhakts are just inspired by hate rather than collective well-being of the nation.
                                            Reply
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