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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 Rs.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 depositors. In case of a mismatch, "suitable action may follow," and It would be treated as a case of tax evasion.

small businessmen, housewifes, workers who had cash lying as savings at home, should not be worried about any tax department scrutiny said by the I.T. Dept.

Deposits up to Rs. 1.5 or Rs. 2 lakh would be below taxable income. "There will be no harassment by the Income Tax Department for such small deposits made"

When cash deposits of the jewellers are scrutinised against sales, "it will also be checked whether they have taken the PAN number of the buyer or not"

So The Government Has Taking Quick Measures To Collect Taxes From The Black Money holders.

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