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If People Deposited Upto Rs 2.5 Lakhs of Demonetised Currency: Chances to Get Taxed at 50%

If People Deposited Upto Rs 2.5 Lakhs of Demonetised Currency

The users who are holding the unaccounted cash, they can deposit the demonetised notes up to Rs 2.5 lakh under the scheme being implemented by the Government.

The government is about to introduce the new amendment in this week in Parliament. This new amendment will let the people who are depositing the unaccounted cash in demonetised Rs 500 and Rs 1,000 notes have to pay 50% tax, along with this they have to lock in 25% amount for four years at zero interest and to leave only 25% of the amount for immediate use.

With the implementation of this new scheme, all the large amount deposits beyond the certain totals could be asked to explain the source. 50% Tax and mandatory 25% deposit scheme must not be applied.

Nepal Bans Rs 500 and Rs 2,000 New Indian Currency Notes and considers ‘illegal’

Tax officials will have an eye on all the significant deposits for the demonetised notes to see if the unaccounted wealth or smaller deposits in a household in different family members accounts.

One of the government official says “There is a Rs 2.5 lakh exemption, but if you have split (the money) and four family members have each deposited this amount, then it will need to be seen.”

These changes to the income tax law were authorised and approved by Union Cabinet on Thursday. The earlier government has mentioned that it will not go to look into the deposits up to Rs 2.5 lakh income tax exemption threshold.

Exchange Your Rs 500 and Rs 1000 Notes Via Mobile Purchase: Indian Handset Makers asks Government

Revenue Secretary Hasmukh Adhia says that they will be getting all the reports of all cash deposits during November 10 to December 30 and it is above the threshold of Rs 2.5 lakh in every account.

“The department would do matching of this with income returns filed by the depositors. And suitable action may follow.” As per the reports people with the unaccounted cash in the old denominations have been farming it out to the others for depositing in their accounts.

Government Says, 50% Tax Penalty for Disclosing Unaccounted Deposit, 4-year lock-in

Government Says, 50% Tax Penalty for Disclosing Unaccounted Deposit

The Central Government has developed a way for the tax cheats to disclose their unaccounted money and still get to keep a share on it. The Union Cabinet on Friday night approved a modification to the Income Tax Act which would charge 50 percent tax on disclosing inexplicable bank deposits using the old currency notes of Rs 500 and Rs 1000.

The new rule is applicable only till December 30 with a four year lock-in period for the unaccounted cash, meaning the accumulators can get half their money back after a period of four years if they disclose their illegal deposit.

If You Receive Income Tax Department Notice on Depositing above Rs 2.5 lakh, Then Don’t fear

The Government however has also said that there will be higher penalties of imposing 90 percent of tax for the candidates those who are voluntarily disclosing their unaccounted cash. This is the latest move from Government following the government’s decision to ban the old 500 and 1000 notes. The cash deposits have been increased after the Government announced the demonetisation. Already Rs 20,000 crore amounts had credited in Pradhan Mantri Jan Dhan Yojna accounts.

As per the latest modification, cash deposits made with the banned Rs 500 and Rs 1,000 notes above the amount originally declared to the Income Tax Departments may attract 50 percent tax. Reports said that the lawbreaker subsequently cannot withdraw the remaining half or 25 percent of the original deposit until four years after detection.

Income Tax Department Notices to People those who Deposit more than 2.5 Lakhs in Accounts

The Government on November 8 had already announced a 50-day period for people to exchange or deposit old 500 and 1000 notes. The changes approved by the Government have already been sent to the President for his assent and will possibly be introduced in parliament next week.