INDIAN TAX SOURCE

Government Slaps Black Money Holders With 85% Taxes! The Modi-led Government on Monday sought to bring to tax all unaccounted money that was flowing into the banking system following the demonetisation announcement on November 8. Finance Minister Arun Jaitley introduced a Bill in Lok Sabha for this purpose. The Centre has now come out with Pradhan Mantri Garib Kalyan Yojana 2016 to enable people with undisclosed income to come clean. However, they would have to fork out a tax of 30 per cent and penalty of 10 per cent. A surcharge in the form of cess of 33 per cent will have to be paid on the tax. In addition to tax, surcharge and penalty, the declarant will have to deposit 25 per cent of undisclosed income in a deposit scheme to be notified by the Centre in consultation with the RBI. This amount is proposed to be utilised for programmes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood etc, so that there is justice and

Cabinet decides to 60% income tax to catch black money holders The Union Cabinet late on Thursday cleared a proposal to amend the Income Tax (I.T.) Act to levy close to 60% deduction on unaccounted deposits in banks above a threshold, said sources. The decision was purportedly prompted by a surge in deposits about 20,000 crore, according to some reports in Jan Dhan accounts since November 8, when the central government announced the demonetisation of Rs 500 and Rs 1,000 currency notes. The amount deposited in this period is almost 50% of the total deposits in these accounts in the two years since their launch. The move is also aimed at preventing black money holders from circumventing existing I.T. Act provisions. The Cabinet decision was called in the late evening. Its reported decision was also significant since the current provision of 30% tax and 200% penalty could be circumvented by those who may deposit black money but pay tax in advance.  In that case, impos

IT DEPART. STARTED ISSUING NOTICES FOR CASH DEPOSITED AS BLACK MONEY? Income tax department has started issuing Notices as cash deposited as old notes on after 09/11/2016 An image of notice was relaving on social media sites at the name of notice issued by the Director of income tax investigation department, Silguri Unit. Though ,We have no idea how many notices has been issued till date ? But it is sure ,that no one will be spared , so Keep ready yourself  with explanations. On the basis of above facts and point ,it can be concluded that Banks have not submitted any data to income tax department yet on the cash deposited during 09/11/2016 to 31/12/2016 as due date for filing return is 31.01.2017 . So ,in present case ,sources of information to Income tax department is not Bank but complaint/ survey by the department or Information collected from assessee  through any other notice sent earlier. At the end ,You should be more careful while depositing cash

BANK ACCOUNT MISUSE FOR BLACK MONEY WILL GIVES A SEVERE GOVERNMENT ACTION Government today cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30. The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse The ministry said "such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act". The government had earlier said deposits up

Deposits Above  RS. s. 2.5 Lakh To Face Tax, 200% Penalty  Cash above  RS. s. 2.5 lakh deposited in banks following the scrapping of  R s. S.500 and  RS. s. 1,000 notes could attract a tax and a 200 per cent penalty in case it is disproportionate to the account owner's income The banks have been asking to keep the details of PAN card of people depositing such large amounts over the 50-day window till December 30.   Similarly, jewellers have been told to keep PAN details of people buying jewellery on cash. Action will be taken against them in case of non-compliance. The government's move is the sequel to the scrapping of high denomination notes, meant to flush out black money and counterfeit currency. Income Tax Department has been  getting reports of all cash deposited during the period of November 10 to December 30, 2016, above  RS. s. 2.5 lakh in every account. The Income Tax department will match this with the income tax returns filed by the d

Rs 500 and Rs 1000 notes cease to be legal tender from midnight Rs 500 and Rs 1000 notes will cease to be legal tender from November 8 midnight, Prime Minister Narendra Modi announced in a televised address to the nation. Here are highlights from his speech: - From midnight, the Rs 500 and Rs 1000 will cease to be legal tender. - The 500 and 1000 Rs notes can be submitted to the post offices and banks from 10th November to 30th December. - Those who can’t sumbit the notes within the deadline, can exchange it at Reserve Bank of India by providing a declaration. - On November 9 and in some places November 10, ATMs will not work. - For 72 hrs, until Nov 11 midnight special arrangements made. All government hospitals will accept old 500 & 1000 notes. - RBI’s proposal for new Rs 2000 note has been accepted. - On November 9, all banks will remain closed for public work. Notes of 500/1000 up to the value of 5000/- can be changed at airport. From 01.01.2017