Deposits of over Rs 2.5 Lakh to Face tax, 200% Penalty on Income Mismatch

[Spartan]

Further dangling the stick, government on Wednesday night warned that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch.

"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," Revenue Secretary Hashmukh Adhia said tonight.

Any mismatch with income declared by the account holder will be treated as a case of tax evasion.

"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 government has allowed citizens to deposit in their bank accounts old currency of Rs 500 and Rs 1,000 denominations, which had been declared invalid in the nation's biggest crackdown on blackmoney, corruption and counterfeit notes, between November 10 and December 30.

Adhia said 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.

"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 jewelery, 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.

[Bangaruu]

4 ways Non Residential Indians (NRIs) can change their 500 and 1000 rupee notes

Posted : November 10, 2016 at 1:13 am IST by ManaTeluguMovies

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Indian Prime Minister Narendra Modi in a surprise move on Tuesday night announced high-denomination notes of 500 and 1000 rupees will no longer be legal tender from midnight local time.

“Brothers and sisters, to rid this country of the termite-like corruption and black money, it has become essential to take one more tough step. Starting midnight tonight, that is, on the midnight of November 8, 2016, the current currency notes of denominations of rupees 500 and rupees 1,000, will no longer remain legal tender. These currencies will become legally invalid.”

Narendra Modi Tweet:

All details on the announcements made today can be found here. http://www.finmin.nic.in/press_room/2016/press_cancellation_high_denomination_notes.pdf …#IndiaFightsCorruption

The move aimed at combating the scourge of black money, corruption and fake currencies that allegedly fund terrorism forced people in India to scurry to petrol pumps and ATMs, as news spread.

This new development has also raised many questions among the huge Indian diaspora living abroad. Many in Australia woke up to this news and were looking for answers as to how could they get their old 500 and 1000 rupee notes converted.

Here are 4 ways you could get your old 500 and 1000 rupee notes converted:

1. Carry the cash with you to India:

Many non-residential Indians are scheduled to make their trip to India in coming months. You can carry your old notes to India and you will be able to deposit this into banks or post offices till December 30, 2016.

If you are not traveling this year, you can still change them until March 31, 2017 by furnishing ID proof.

2. Use money-exchange in your country:

You could exchange your cash (read old Indian currency notes) at a certified money exchange in your city (this could be commercial private money exchange outlets and your local banks) and change your money into dollars, pounds, or other local currency, and then change it back to rupees when you visit India. You may lose a bit on conversion rate but this is an option, if you are not travelling to India before March 31, 2017.

UPDATE: Certain commercial money exchange outlets have reportedly refused to accept the old 500 and 1000 notes. Kindly check your money-exchange options at your local bank. We will continue to bring you updates as the matter develops.

3. Deposit the old notes in your NRO account:

Reserve Bank of India’s (RBI) website has put our FAQs which states that you can deposit your notes into Non-Resident Ordinary (NRO) Savings Account.

4. Authorise another person in India to deposit the notes:

According to RBI guidelines, if you have old banknotes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person so authorized has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)

[dasara_bullodu]

Just now, Spartan said:

Further dangling the stick, government on Wednesday night warned that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch.

"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," Revenue Secretary Hashmukh Adhia said tonight.

Any mismatch with income declared by the account holder will be treated as a case of tax evasion.

"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 government has allowed citizens to deposit in their bank accounts old currency of Rs 500 and Rs 1,000 denominations, which had been declared invalid in the nation's biggest crackdown on blackmoney, corruption and counterfeit notes, between November 10 and December 30.

Adhia said 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.

"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 jewelery, 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.

 

 

 

[Akkumm_Bakkumm]

Very good...