Deposits Above Rs 2.5 Lakh To Face Tax And Penalty on Mismatch

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The Government has announced that 200 per cent penalty and Tax would be charged on cash above 2.5 lakh, following the scrapping of Rs. 500 and Rs. 1,000 notes. Therefore, according to the banks norms, you must show the details of PAN card during the depositing massive amount over the 50-day window till dead line as December 30, the same thing has been applied for the jewelers as they also need to show the details of PAN card during the any purchasing of jewellery in cash.

Revenue secretary Hashmukh Adhia said that “We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account. The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,”

He further stated that if any mismatches found during the income declaration by account owner, the suitable action may follow against them and it will be treated as a cash of tax evasion.

Read Also: A New Step Taken By PM Modi Towards Black-money, Banned 500 and 1000 Currency

“This would be treated as a case of tax evasion and the tax amount plus a penalty of 200 per cent of the tax payable would be levied as per the Section 270(A) of the Income Tax Act,” he said.

The small businessmen, vendors, employees and housewives who had case lying as savings at home or have cash up to Rs. 1.5 or 2 lakh, not be worried about any harassment by the Income Tax Department.

“Such group of people need not worry about such small amount of deposits up to Rs 1.5 or 2 lakh since it would be below the taxable income. There will be no harassment by the Income Tax Department for such small deposits made,” he said. On people resorting to buying of jewellery, he said persons buying jewelery has to provide the PAN number.

“We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised.”Action will be taken against those jewellers who fail to take PAN numbers from such buyers. When the cash deposits of the jewellers would be scrutinised against the sales made, whether they have taken the PAN number of the buyer or not will also be checked,” he added.

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