Press Information Bureau
Government of India
Ministry of Finance
10-November-2016 10:28 IST
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 30th December,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.
Can I deposit more than 2.5 lac cash in my saving account. This cash is my home saving from my salaries since last ten years and income tax already paid for that years.
Can one deposit advance tax of say 50000 Rs in cash in old notes and Rs 2.45 lacs in cash to his bank account.A re banks accepting old notes for advance tax payment of income tax
Can one deposit advance tax of say 50000 Rs in cash in old notes and Rs 2.45 lacs in cash to his bank account.A re banks accepting old notes for advance tax payment of income tax
My wife is not payer and no Pan No how money deposit in bank a/c old rs
The Answer A-1 is highly discouraging. Yes, small earning person may have some savings. But, is it not the fact that the Tax Payers, say a man or a woman earning Rs. 10 Lacs/year, may have a saving in cash more than the less earning person. In my own view, the person who is earning less and depositing up to Rs. 2.5 lacs is some one else money, and person earning Rs. 10 Lacs/year and depositing up to Rs. 2 Lacs or around could be his own savings, specioally women folk.
Sir, You placed a useful info but i want to ask a question that i have filled my last 2 years return with 2.50 L and 2.64 L and later now i have deposited 5L in my SB account as i having that then what will be the consequences upon.
Very useful information.
Very useful information.
Sir, Thank you for giving such a nice information. I will put two questions and I hope to get a reply.
1. You have mentioned that there will be no ‘harasment’ for depositing small amounts of Rs.1.50 lacs or Rs.2.00 lacs But if they send a notice to small depositers, huch much agony and harasment will the depositer face?
2. As I am a pensioner, i deposit Rs.1.50 lacs in my account, what will be the threshold limit for a pension of Rs.30,000/-?