Revenue secretary Dr Hasmukh Adhia gives answer on the questions relating to action by incoming tax department in respect of money deposited in banks in old currency

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2022
Income Tax and Old Currency Exchange
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley addressing a press conference, in New Delhi on November 09, 2016. The Finance Secretary, Shri Ashok Lavasa, the Secretary, Department of Economic Affairs, Shri Shaktikanta Das, the Revenue Secretary, Dr. Hasmukh Adhia and the Director General (M&C), Press Information Bureau, Shri A.P. Frank Noronha are also seen.
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Some replies given by revenue secretary Dr Hasmukh Adhia on the questions relating to action by incoming tax department in respect of money deposited in banks in old currency

Q1  A lot of small businessmen, housewives, artisans, workers may have some cash lying as their savings at home, will the income tax department ask questions if the same is deposited in banks?

A!: Such group of people as mentioned in the question need not worry about such small amount of deposits up to 1.5 or 2 lacs, since it would be below the taxable income. There will be no harassment by income tax department for such small deposits made.

Q2: Will the Income Tax Department be getting reports of cash deposits made during this period? If so, will the current threshold of reporting requirement of reporting cash deposites of more than 10 lacs will only continue?

A2: We would be getting reports of all cash deposited during the period of 10th November to 30thDecember above a threshold of 2.5 lacs  in every account.  The department would do matching of this with income returns filled by the depositors. And suitable action may follow.

Q3: Suppose the department finds that huge amount of cash above 10 lacs is deposited in a bank account, which is not matching with the income declared, what would be the tax and penalty to be paid on the same?

A3: This would be treated as the case of tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per the section 270(A) of the income tax Act

Q4: It is believed that a lot of people are buying jewelry now, how does department plan to tackle this?

A4: The person who buys jewelry has to give his PAN number. We are issuing instructions to the field authorities to check with all the jewelers to ensure that this requirement is not compromised. Action will be taken against those jewelers who fail to take PAN numbers from such buyers. When the cash deposits of the jewelers would be scrutinized against the sales made, whether they have taken the PAN number of the buyer will also be checked.

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Antara Tripathy M.Sc., B.Ed. by qualification and bring 15 years of media reporting experience.. Coverred many illustarted events like, G20, ICC,MCCI,British High Commission, Bangladesh etc. She took over from the founder Editor of IBG NEWS Suman Munshi (15/Mar/2012- 09/Aug/2018 and October 2020 to 13 June 2023).
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