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

  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
      2. 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. Load More Comments