The recent notification of the Central Board of Direct Taxes (CBDT) asking banks to furnish details of cash deposits above a certain amount has got many worried about receiving notice from the income-tax department.
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.
However, if media reports are to be believed, those who have deposited even Rs 2.5 lakh could also come under the scanner of the taxmen.
As per a report, there may not be a blanket reprieve for anyone depositing demonetised notes up to Rs 2.5 lakh.
For this the government may introduce an amendment in Parliament that will allow those depositing unaccounted cash in demonetised Rs 500 and Rs 1,000 notes to pay 50 per cent tax, lock in 25 per cent amount for four years at zero interest, leaving only 25 per cent for immediate use.
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.
The authorities said that smaller deposits from members of the same family will not go unnoticed.
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.