Already entire country is facing huge problem to handle the recent ban of Rs 500 & Rs 1000. People are waiting for opening the banks so that they can exchange the old notes with the news ones. And there are many questions how much money one can deposit and what will be the income tax implication etc.
As per the latest update on this currency ban news, Mr,. Arun Jaitley has disclosed another fact to alert people about the cash deposit. One can deposit cash up to 2.5 lakh without worrying anything. But if your deposit cross Rs 2.5 lakh in the window of 50 days, then income tax department will scrutiny the transactions and in case there is a miss match with income & deposit then there will be a penalty of 200%.
“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.
“We will 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.
“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.
Govt has assured that people have white money or savings at home can deposit the cash without worrying anything. In case of gold purchase, the clear instruction has been given to shop owners to collect PAN number on every transaction. In case the PAN is not collected, then this can be traced later on and then necessary punishment will be given to the shopkeeper.
So, better to play safe. Try to make every transaction clean and provide necessary documents wherever required. Don’t do any kind of mistake just to save few tax. By this time you should understand that how much strict this Govt is and how much difficult it will be in future to hide cash or hide any transaction.