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.
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.
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.