Deposits above Rs 2.5 lakh to face tax plus, 200 per cent penalty on mismatch

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

By: PTI | New Delhi | Published:November 9, 2016 10:19 pm

 

tax evasion, demonetisation, income tax, income declaration, 200 per cent penalty, Modi Government, Revenue Secretary Hashmukh Adhia , 500-1000 notes invalid, indian express news Hasmukh Adhia, Revenue Secretary, Financial Services.

Further dangling the stick, government on Wednesday night warned 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 on Wednesday night.

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 in their bank accounts old currency of Rs 500 and Rs 1,000 denominations, which had been declared invalid in the nation’s biggest crackdown on blackmoney, corruption and counterfeit notes, between November 10 and December 30.

For all the latest India News, download Indian Express App now

  1. M
    MyTake
    Nov 9, 2016 at 6:56 pm
    (Further dangling the stick, government on Wednesday night warned 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.)lt;br/gt;lt;br/gt;Watch out for relatives, "hired" relatives, "rented" relatives and extended family member coming together to keep it below 2.5 Lakhs each! Don't make it an escape route, yet! False declaration should go with severe penalties, once found out and every one should be signing a declaration in this regard!
    Reply
    1. M
      MyTake
      Nov 9, 2016 at 6:52 pm
      (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.)lt;br/gt;lt;br/gt;Brilliant idea that Modi Team thought through all these! All Power to modi Team. I don't think many will even think about this black money path again after this Modi "therapy"!
      Reply
      1. M
        MyTake
        Nov 9, 2016 at 6:47 pm
        All exchanges should be made instantly using Adhar card linked account, so it can be traced later should that be required.
        Reply
        1. M
          MyTake
          Nov 9, 2016 at 6:39 pm
          Ha! ha! Only fees days ago Modi declared to carry out a surgical strike against corruption and black money! As usual Hindian Hinglish Media failed even to guess what that could be and was sleeping! Next time whatever Modi says, take it seriously!lt;br/gt;lt;br/gt;On the positive side: this shows India got talents but all these years they were intentionally kept at a distance, divising ways to fight with each other, pulling each other's legs like "crabs"! Modi always believed in Indian talents and now he is going to bring them together. It's now people's turn!lt;br/gt;lt;br/gt;Thieves: don't worry you will also get the increased share of prestige of being Indian. After all it is Sabka Sath Sabka Bikash!
          Reply
          1. M
            MyTake
            Nov 9, 2016 at 10:15 pm
            If this method alone is applied every five years of and when necessary, crooks will not see the light of day any more nor they will think about running their industry knowing the snap might come down like ton of brick anytime! In one strike many messages have been sent!lt;br/gt;lt;br/gt;The most the crooks now can do is chant Om and do some yoga, again with Modi on possibly yoga day to improve themselves! Back to the cl room of humanity once again!
            Reply
            1. M
              MyTake
              Nov 9, 2016 at 6:44 pm
              Now many are going to have diorea inside their stomach! It's not going to come out!
              Reply
              1. R
                rocky
                Nov 9, 2016 at 5:43 pm
                Get ready for extra shakedown from the IT folks, specially the elderly.
                Reply
                1. A
                  ajay
                  Nov 9, 2016 at 7:11 pm
                  after a long time feeling benefit of being honest.
                  Reply
                  1. A
                    ashok s
                    Nov 9, 2016 at 11:46 pm
                    Now India has seen its first sunrise. Pm who was care fully taking singles has lofted for six.
                    Reply
                    1. D
                      Dr.D.T.subhash
                      Nov 9, 2016 at 9:45 pm
                      Great Economic reform of 21st century of India and this will bring about Discipline and morality in public life and increase the size of Indian Economy enormously.Hope all Indian citizens co operate to implement this new scheme successfully. As usual the "Affected parties of ill-gotten wealth" raise so many issues to mislead the public and carve-out section of "Vote Bank politics" at the cost of nation. Sri. Narendra Modi and his Team has made a "History". But to survive this history, this team should rule this country for another 10-years. Congratulation Modiji for your boldness, courage and steadfast against corruption.
                      Reply
                      1. g
                        guru592006
                        Nov 9, 2016 at 5:09 pm
                        It is just fantastic and warning to the black Money holders not to fall prey to professional accountants to convert black to white using short cuts.
                        Reply
                        1. F
                          freethinker
                          Nov 9, 2016 at 9:43 pm
                          What about the millions of farmers and ordinary male and female workers? How does the government think they will manage? Must they also have bank accounts? How many banks will the government need? The amount of money withdrawn is not enough to fill truck with fuel or enable a simple contractor to pay ten labourers.
                          Reply
                          1. V
                            Vish Ontoor
                            Nov 9, 2016 at 5:35 pm
                            Feel proud to be Indian. After decades of earning only a ry and diligently paying taxes, I wondered what was the point of studying hard, getting a job, and paying regular taxes when I couldn't afford the property market? Now Modi has at least given us a level playing field. I can rest in peace that all my money is white. I have no fears and I can sleep with peace. So happy that the bad guys are being put to task! Good job Modi!
                            Reply
                            1. M
                              Mayur Panghaal
                              Nov 9, 2016 at 5:45 pm
                              How PayTM knows about this decision in advance? Newspaper ads are booked in advance as per my understanding!
                              Reply
                              1. M
                                Mayur Panghaal
                                Nov 9, 2016 at 5:52 pm
                                People think that this will stop black money from being used in elections .lt;br/gt;Dead wrong !!lt;br/gt;Not many know that after being convicted by HC and SC for taking foreign funds, Cong bjp were to be banned as political parties.But they got together and changed the FCRA law ... and now its legal for political parties in India to take foreign 'donations'.lt;br/gt;In one stroke..feku and cong made India an official banana republic.lt;br/gt;Nowhere in the world is it legal for political parties totake foreign money...Not even in the official Banana republics of Africa !!!lt;br/gt;-----'''''lt;br/gt;But will u hear this on any news channel ? lt;br/gt;No.lt;br/gt;Cause if you dolt;br/gt;...they will be banned next
                                Reply
                                1. M
                                  Mayur Panghaal
                                  Nov 9, 2016 at 5:44 pm
                                  Tax plus penalty of 200% will be levied on cash deposited in bank accounts but not matching with income declared: Revenue Secy.lt;br/gt;-----------------------------lt;br/gt;And what about daily wage earners (85% of the potion) who has no access to a bank account ??lt;br/gt;----------------------lt;br/gt;WTF is going on in this country ??
                                  Reply
                                  1. N
                                    NeedHelp
                                    Nov 12, 2016 at 6:43 am
                                    Donation Requestlt;br/gt;lt;br/gt;I am in need of funds and would be very thankful if anyone could Donate any amount.lt;br/gt;ICICI Bank A/c- 102101512656 , IFSC- ICIC0001021.lt;br/gt;lt;br/gt;God will bless you.
                                    Reply
                                    1. V
                                      Vihari Naidu
                                      Nov 9, 2016 at 5:40 pm
                                      Look at the gold prices rise today. Guess all the tainted money is going inttainte.
                                      Reply
                                      1. R
                                        Reghu Rnair R Nair
                                        Nov 9, 2016 at 5:18 pm
                                        now get ready to face the law
                                        Reply
                                        1. S
                                          Smart
                                          Nov 9, 2016 at 6:04 pm
                                          Now people with black money will feel the pinch. You cannot take anything for granted for a long time.
                                          Reply
                                          1. D
                                            Deep
                                            Nov 11, 2016 at 5:16 pm
                                            Dude!! Its not apocalypse! you are just making unnecessary fuss out of it. 100 rs and 50 rs notes are still working and not just that. You can draw 10 k from your home branch. Also do you know anything about your history?? Our country man has seen even worse days, from Dandi yarta to jallianwala bagh from m slaughter to m slavery, don't forget the kind of tax mughals and british used to impose on us and all of that for no holy reasons.. so don't complain and be patient and do your part for the growth of your own country!
                                            Reply
                                            1. Load More Comments