This (deposits of over Rs 10 lakh that do not match with returns) will be treated as a case of tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per section 270(A) of the Income Tax Act," Adhia said in a statement emailed late on Wednesday evening.
The government will receive daily updates on the number of Rs 500 and Rs 1,000 notes deposited in each bank branch. Under the law, large cash deposits have to be reported to the government. “We will be getting reports of all cash deposited during November 10 to December 30, 2016 above a threshold of Rs 2.5 lakh in every account. The department will match this with income returns filled by the depositors. And, suitable action may follow,” the revenue secretary said.
The crackdown on cash follows a successful Income Disclosure Scheme where those with unaccounted funds were allowed to come clean after paying 45% tax and penalty against the peak income tax rate of 30%:shock:
Here’s What’s the actual value is
Every Rupee of black money would be reduced to 9% of it, if at all claimed
Declare 1 crore of unaccounted cash and receive 9 lakhs after deduction. 30%Tax + 60% penalty + ~1% cess.
for people getting confused and thinking 200% of the unaccounted money would be charged as penalty, please read article in their entirety, instead of just headings. It says
“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,”
Tax Payable = 30%
Penalty = 200% of Tax Payable = 60%
Hope that helps. Now go save your 9 Lakhs:-}