Reportedly, the Government warns to impose tax on all cash deposits above 2.5 lakhs with 200% penalty in case of income mismatch.Any mismatch with income declared by the account holder will be treated as mismatch.
Following the scrapping of rs. 500 and Rs. 1000 currency notes, the Government has allowed the citizens to exchange their old notes to deposit in their bank accounts between 10th November to 30th December.
“The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow. 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, said revenue secretary Hashmukh Adhia.
Small businessmen, housewives, artisans and workers who had some cash lying as their savings at home should not be worried about any tax department scrutiny.
People who are resorting to buying jewellery are also under the net. PAN will be mandatory for purchasing jewellery. Jewelers who fail to obtain PAN details from the buyers will have to face actions from the Government.
“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.
