Demonetisation: Deposits above Rs 2.5 lakh to face tax, penalty on mismatch, says Hasmukh Adhia

Any mismatch with income declared by the account holder will be treated as a case of tax evasion.

By: ENS Economic Bureau | New Delhi | Published:November 10, 2016 4:07 am
rs 500, rs 1000, rs 500 note, rs 1000 note, tax evasion, demonetisation, income tax, income declaration, 200 per cent penalty, modi government, revenue secretary hashmukh adhia , 500-1000 notes invalid, indian express news Revenue Secretary Hasmukh Adhia. (File Photo)

The Centre on Wednesday said that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch. “We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account ….The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,” Revenue Secretary Hashmukh Adhia said.

Any mismatch with income declared by the account holder will be treated as a case of tax evasion. “This would be treated as a case of tax evasion and the tax amount plus a penalty of 200 per cent of the tax payable would be levied as per the Section 270(A) of the Income Tax Act,” he said. The government has allowed citizens to deposit old currency of Rs 500 and Rs 1,000 denominations between November 10 and December 30.

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Adhia said small businessmen, housewives, artisans and workers who had some cash lying as their savings at home should not be worried about any tax department scrutiny. “Such group of people… need not worry about such small amount of deposits up to Rs 1.5 or 2 lakh since it would be below the taxable income. There will be no harassment by the Income Tax Department for such small deposits made,” he said.

On people resorting to buying of jewelery, he said persons buying jewelery has to provide the PAN number. “We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised. “Action will be taken against those jewellers who fail to take PAN numbers from such buyers. When the cash deposits of the jewellers would be scrutinised against the sales made, whether they have taken the PAN number of the buyer or not will also be checked,” he added. With PTI

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  1. M
    MyTake
    Nov 10, 2016 at 4:12 am
    First step in right direction to fix the home front first. Without this fixed, India not in a position to fight even pirates from Somalia, what to speak of China or even stan!
    Reply
    1. R
      Respect Everyone
      Nov 10, 2016 at 1:02 am
      What if the amount if one credits to his od/loan account?
      Reply
      1. V
        Vinayak
        Nov 10, 2016 at 7:43 am
        No wonder, Congies, Commies and other so called secular parties, who openly support terror elements, oppose the government ban on higher denomination notes, as this breaks the backbone of terror organisations.
        Reply
        1. V
          Vishy
          Nov 10, 2016 at 3:59 am
          Learn to see the lighter side of things you leftist as****e Appreciate when good things are done !! Cribbing has become your fav p time given that the communist party does not understand development . Complaining all the time is injurious tonyour communist Health
          Reply
          1. A
            ashok s
            Nov 10, 2016 at 1:21 am
            I want to hear that how many builders were caught in this act. Has govt cut downed or keeping watch on their logistic or routing of black money.
            Reply
            1. A
              ashok s
              Nov 10, 2016 at 12:23 am
              Please check builders also ,they have in-house money counting machines. Why such machines are licensed to them. I wonder why, to collecte black money.
              Reply
              1. B
                Balaji
                Nov 10, 2016 at 3:32 am
                Yes wedding team will face difficulties, But better to accept the difficulty. It is a big country of 125 crores of people. Postponing and Preponing the decision will not achieve the goal. Every time somebody will be there to be affected .
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                1. K
                  Kaliyug
                  Nov 10, 2016 at 2:41 am
                  People will dump this currency in the temple Hundi, they will try to bribe the bankers who hold the trump card in this exchange. There are many avenues of corruption that are still vibrant in India. This was a good step in the right direction, now the bribe takers will ask for new currency. The businessmen who bribe the system have to be held accountable. Dawood Ibrahim had a sleepless night with all the paper without any value.
                  Reply
                  1. D
                    DA
                    Nov 10, 2016 at 7:17 am
                    I agree with the PM's move, and commend them for it. However, the higher value notes should have been permanently dmonitised. This would have a great long term impact, and made corruption much harder. Any other way paying or receiving dirty money would leave a paper trail, or evidence. That could be tracked and the guilty punished.lt;br/gt;lt;br/gt;As a starter, track all travel activity of important government servants with discretionary powers. Track foreign travel, particularly. That's a common form of bribe.lt;br/gt;lt;br/gt;Also check where a government servants children study abroad, and try and figure out how that's paid for. Sham scholarships are a common way to bribe officials worldwide.
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                    1. A
                      A Basu
                      Nov 10, 2016 at 3:48 am
                      Your knowledge of Dawood Ibrahim's sleep are phenomenal. Do you sleep in the same bed with him? Perhaps the Indian authorities can make some good use of your access.
                      Reply
                      1. H
                        heena
                        Nov 10, 2016 at 2:04 am
                        Hats off to shri Modiji, So far loot and let loot is the only slogan the congress is practising through out their tenure of 65 years. That UPA loot is beyond comprehend of common man.
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                        1. S
                          sourabh
                          Nov 11, 2016 at 8:05 am
                          It is really good move and intention from govt.lt;br/gt;But this action, can only convert current black money to white.lt;br/gt;However, penalties (200%) that govt proposed might not be imposed on people depositing access black money into bank account. lt;br/gt;because people might say that access money is earned money and they will declare income tax for the same in 2016-2017.lt;br/gt;Only thing is that all cashes will go into bank account and tax net. As far as i see unaccounted money will not be penalized.
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                          1. K
                            KAPIL DEV
                            Nov 10, 2016 at 4:16 am
                            MODI govt strike black money is commendable step and will unearth black money but there are many draw backs in its implementation . it is not legally compulsory for an individual to deposit his saving in the banks . in our society female baby marriage is great burden of parents . so they save the money from the very birth of child's in recent announcement the government has exempted only 2.5 lacks rupee from income tax EXAMPTION . in present time at least 15 lacks rupee is required which household wives have saved . so their remaining money will be of zero value . moreover i saw yesterday on India tv at 9 pm with Rajat sharma a father of girl who went outside from his home to another city to celebrate marriage of his daughter en cashed the rupee from bank from his account , he was weeping along with his wife and daughter being penniless although having rupee notes of 500 and 10000 SUFFICIENT QUANY . in some cases people are dying in hospital as they dont accept old notes. even medicine in serious cases can not be purchased due to non acceptance of 500 and 1000 rupee note IN ONE CASE A PATIENT WAS EXPIRED. THEY REFUSED TO HAND OVER THE DEAD BODY DUE TO NON PAYMENT OF BILL DUE TO THEIR REFUSAL ON NON ACCEPTANCE OF 500 AND 1000 RUPEE NOTES . GOVERNMENT SHOULD IMMEDIATELY TAKE APPROPRIATE IMMEDIATE MEASURES TO REDRESS THE GRIEVANCES AND DIFFICULTIES OF PEOPLE. OTHERWISE GOVT WILL LOOSE THE SYMPATHY OF PEOPLE WHICH GOVT. HAS EARNED BY BOLD ACTION . ORDINARY PEOPLE SHOULD NOT BE HARED IN SPITE OF MONEY IN THEIR POCKET . GOVERNMENT SHOULD IMMEDIATENESS INSTRUCTION TO GOVT. DEPARTMENTS TO TAKE OLD NOTES IN PENDING BILLS LIKE ELECTRICITY TELEPHONE BILL AND ANY OTHER TAX PAYABLE TO GOVERNMENT .. . . .
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                            1. S
                              sajeev
                              Nov 10, 2016 at 5:06 am
                              Mr. Modi should now take drastic action against government officials who cannot life a finger until it is galvanized with an appropriate bribe.
                              Reply
                              1. S
                                Sheik Mohamed
                                Nov 10, 2016 at 12:55 am
                                Let us welcome this move wheartedly, in nation's interest which shall unearth the motive of tax evaders for a prolonged period of time.
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                                1. R
                                  roy
                                  Nov 10, 2016 at 5:16 am
                                  I do not disturbed by ban on old currency. I take goods on credit from nearby shop. I advise you to take credit for one week from nearby shop
                                  Reply
                                  1. P
                                    Puneet Sharma
                                    Nov 10, 2016 at 11:46 am
                                    I have gold I want to sell. Is it an issue?
                                    Reply
                                    1. V
                                      Valsalan Kanara
                                      Nov 10, 2016 at 2:11 am
                                      Chidambaram is correct
                                      Reply
                                      1. Y
                                        yedfi
                                        Nov 10, 2016 at 12:49 am
                                        there is no need to check these builder , by default they fall in this net. Along with builder there are land banker who does this.
                                        Reply
                                        1. R
                                          Raj V
                                          Nov 10, 2016 at 1:52 am
                                          Good move. poltical parties, business men and others storing unaccounted money will be in for trouble. Small and medium vendors evading income tax can be brought inside the IT net.
                                          Reply
                                          1. Y
                                            yash sehgal
                                            Nov 10, 2016 at 2:12 am
                                            A big leap forward by Modi ji..lt;br/gt;But FM wud hv thought about wedding season ...a great piquant situation by parents of brides n grooms..yesternight i attended a wedding .. I had to give a cheque in 'sagan' as i had only 1000 n 500 Rs notes..the parents of the bride was on the verge of crying..lt;br/gt;Its true in such decision people r bound to hv hard times but it was govt duty to see n postpone/ prepone this step for a few days..
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