Friday, November 18, 2016

Demonetisation of old high denomination currency and cash deposits in bank

Government of India
Ministry of Finance
Department of Revenue

Central Board of Direct Taxes
New Delhi, 18th November, 2016.

PRESS RELEASE 

Accounts It was announced by the Government earlier that small deposits made in the banks by  artisans,  workers,  housewives, etc.  would  not  be  questioned  by  the  Income  Tax  Department  in  view  of  the  fact  that  present  exemption  limit for  Income  Tax  is  Rs.2.5  lakh. Reports  are  being  received  of  instances  where  people  are  using  other  persons’  bank  accounts to convert their black money into new denomination notes for which reward is also being  given  to  the  account  holders  who  agree  to  allow  their  accounts  to  be  used.    This  activity has been reported in case of Jan-Dhan Accounts also.

It is hereby clarified that such tax evasion activities can be made subject to Income Tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act.

However, genuine persons depositing their own household savings in cash into their bank accounts would not be questioned. 

The  people  are  requested  not  to  get  lured  by  black  money  converters  and  be  a  partner in this crime of converting black money into white through this method.  Unless all citizens  of  the  country  help  the  Government  in  curbing  black  money,  this  mission  of  black  money  will  not  succeed.    Also  the  people  who  are  against  the  black  money  should  give  information  of  such  illegal  activities  going  on  to  the  Income  Tax  department  so  that  immediate action can be taken and such illegal transfer of cash can be stopped and seized.  

Black  money  is a crime  against  humanity. We  urge  every  conscientious  citizen  to  help join the Government in eradicating it.

(Meenakshi J. Goswami)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT

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