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10
November 2016
Finance Minister Arun Jaitley on
Thursday said nobody would be harassed over smaller deposits -- less than Rs
2.5 lakh -- as people began thronging banks nationwide to exchange or deposit
Rs 500 and Rs 1,000 currency notes that have been demonetised. The Total Investment & Insurance
Solutions
"Nobody will face questions or
harassment for small deposits," Jaitley told reporters while inaugurating
the two-day Economic Editors Conference here. The Total Investment & Insurance Solutions
"It is only those with large
amounts of undisclosed money who will have to face the consequences under
existing laws," the minister said.
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He said people might face problems
initially, but in the medium- to long-run they will definitely benefit from the
government's policy of demonitising large currency notes in a bid to curb
corruption, unaccounted wealth and terror financing. The Total Investment & Insurance Solutions
The denominations ceased to be legal
tender from midnight on Tuesday.
The Finance Minister also said that the
amounts of Rs 1.5-2 lakh are too small and the administration will not bother
to make enquire into such deposits.
Earlier, Revenue Secretary Hasmukh Adhia
clarified that people just cannot walk away by depositing any amount of cash
without prosecution. But amounts below Rs 2.5 lakh will attract no
harassment.
What about an amount above Rs 10 lakh
which does not match the income declared? What will be the penalty and what
will be the tax?
"This would be treated as the 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,"
Adhia said.
For people who are trying to buy
jewellery to use their unaccounted cash, Adhia said, "The person who buys
jewellery has to give his PAN number. We are issuing instructions to the field
authorities to check with all the jewellers to ensure that 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 said.The Total Investment & Insurance
Solutions
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