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
    2. 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 .
              Reply
              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
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