Modiji’s surgical strike on black money is surely worth appreciating! But on the other hand, everything has changed overnight and people don’t know how to react to this.
All Rs 500 and Rs 1000 notes are considered to be invalid, starting today. This move of the PM has received mixed reactions; some think that it is going to benefit the nation, while some others think that it is going to hamper the common man.
However, the ban on the notes was not the only move that was announced by the government. They came up with another strict move to monitor illegal money.
Today, the government has given a warning that if a person has above Rs 2.5 lakhs in his bank account under this 50 day window (10th November to 30th December), he would be questioned for the same. Moreover, if he fails to show a proper proof of income, a 200 percent penalty would be applicable.
Hasmukh Adhia, the Revenue Secretary stated that
“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. (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,”
Any sort of income mismatch would be considered as “Tax Evasion” and a person will have to pay 200% penalty on that amount.
All citizens are allowed to deposit their old notes into their bank accounts between 10th of November to the 30th of December.
There are good chances that people having black money would have excess deposits and so, in a bid to bring this down, the Government has come up with such a move. Now, a person having above Rs 2.5 lakhs in his bank account is questionable.
However, if you have a proper income proof or if your amount isn’t Rs 2.5 lakhs, you need not worry!
