Press Release by Govt of India , Ministry of Finance,10-November, 2016
Replies given by Revenue Secretary Dr. Hasmukh Adhia on the questions relating to action by Income Tax Department in respect of old currency deposited in banks .
Q.1 A lot of small businessmen, housewives, artisans, workers may have some cash lying as their savings at home, will the income tax department ask questions if the same is deposited in banks?
A.1: Such group of people as mentioned in the question need not worry about such small amount of deposits up to Rs.1.5 or 2 lacs, since it would be below the taxable income. There will be no harassment by Income Tax Department for such small deposits made.
Q.2: Will the Income Tax Department be getting reports of cash deposits made during this period? If so, will the current threshold of reporting requirement of reporting cash deposits of more than Rs.10 lacs will only continue?
A.2: We would be getting reports of all cash deposited during the period of 10th November to 30thDecember,2016 above a threshold of Rs. 2.5 lacs in every account. The department would do matching of this with income returns filled by the depositors. And suitable action may follow.
Q.3: Suppose the department finds that huge amount of cash above Rs.10 lacs is deposited in a bank account, which is not matching with the income declared, what would be the tax and penalty to be paid on the same?
A.3: This would be treated as the case of tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per the section 270(A) of the income tax Act
Q.4: It is believed that a lot of people are buying jewelry now, how does department plan to tackle this?
A.4: The person who buys jewelry has to give his PAN number. We are issuing instructions to the field authorities to check with all the jewelers to ensure that this requirement is not compromised. Action will be taken against those jewelers who fail to take PAN numbers from such buyers. When the cash deposits of the jewelers would be scrutinized against the sales made, whether they have taken the PAN number of the buyer or not will also be checked.
Watch Media Briefing by Union Finance Minister Shri Arun Jaitley on Banning of Bank Notes (Rs 500/ Rs 1000) (Streamed live on Nov 9, 2016 )
Related Post
- Note counting machine with Fake Detection -Indian Rupees
- Bank branches to process Rs 100 and above with fake note detection machines
- Detection and Impounding of Counterfeit Notes : RBI Master Circular
- Cash Deposit in Bank- Take care of Income Tax Provisions of India
- Download Slip for Exchange of Notes Rs 500 and Rs 1000
- How to Exchange Rs 500 / Rs 1000 Bank Notes w.e.f 10.11.2016
- Banks open on Saturday (November 12) and Sunday (November 13 2016 ) for public
- 8 Use of Rs 500 and Rs 1000 Bank Notes allowed w.e.f 09.11.2016
- RBI FAQs on Withdrawal of ₹ 500/- and ₹ 1000/- Bank Notes
- Salient features of scheme of Withdrawal of Rs. 500 and Rs. 1000
- New Rs 500 Bank Note Key Security Features
- Action to be taken by banks on November 09, 2016 sepcified by RBI
- Video:-PM’s address to Nation on Black Money (Hindi) -Bank Note Rs 500 and 1000 Ban
- Video:-PM’s address to Nation on Black Money (English) 08.11.2016
- Rs 500 / 1000 Notes banned : Text of Indian PM Address to Nation on 08.11.2016
- Withdrawal of ₹ 500 and ₹ 1000 Notes: RBI Notice
- Banks closed on November 9, 2016