Cash Deposits Over Rs 2.5 Lakh Will Have To Pay Tax and 200% Penalty



Continuing with hard steps against black money, the government had warned that Rs.2.5 lakh and above deposits with in 50 day given time will be under scanner. It will also attracts tax and above all a penalty of 200% if, it doesn't match according your IT Returns filed.

All the transaction report of each account with deposit of ₹2.5 lakh and above, made between 10 Nov and 30 Dec will be sent to Income Tax Department. The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow.

Any mismatch of income declared by the account holder will be treated as a case of tax evasion. If found guilty, 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.

Small businessmen, housewives, artisans and workers who have some cash lying as their savings at home shall not be worried about any tax department scrutiny as such small amount of deposits up to ₹ 1.5 or 2 lakh since it would be below the taxable income. There are exempted from screening by the Income Tax Department for such small deposits made.

If you think you are smart by buying jewellery to escape,  government had issued instructions to concerned departments to ensure people on buying jewellery has to provide the PAN number.

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 be checked.

So be safe.... if you have excess money which you cannot disclose, share it a little with poor instead of going as wa
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