The government has warned that the cash deposits above Rs. 2.5 lakh under the 50-day window could attract tax plus a 200 per cent penalty if the cash deposited in bank accounts doesn’t match with income declared.
As per a report, there may not be a blanket reprieve for anyone depositing demonetised notes up to Rs 2.5 lakh.
Changes to the income tax law were approved by Union Cabinet on November 24.
The government had earlier said that individuals would be allowed to deposit demonetised notes up to Rs 2.5 lakh with income tax exemptions.
People deposited Rs 27,000 crore in the Pradhan Mantri Jan Dhan Yojana accounts between November 9 and 23, raising the suspicion that these accounts, meant to promote financial inclusion of the poor, were being used to launder money.