1. Rs 500, Rs 1000 notes ban: Save yourself from jail and taxman, read this

Rs 500, Rs 1000 notes ban: Save yourself from jail and taxman, read this

Rushing to banks with your Rs 500 and Rs 1000 notes? Here is an income tax alert for you. PM Narendra Modi has banned these notes and thereby set off a a wild chase across India by panicked people to rush to banks and post offices to exchange the barred currency for lower denomination notes which are still legal tender.

By: | New Delhi | Updated: November 11, 2016 1:35 PM
Rs 500, Rs 1000, rs 500 note ban, rs 1000 note ban, notes ban, income tax filing, narendra modi, income tax returns, India, Income Tax department, atm booths, denomination notes Rs 500, Rs 1000 notes ban: Long queue outside an ATM in Lucknow, Uttar Pradesh.

Rs 500, Rs 1000 notes ban: Rushing to banks with your Rs 500 and Rs 1000 notes? Here is an income tax alert for you. PM Narendra Modi has banned these notes and thereby set off a a wild chase across India by panicked people to rush to banks and post offices to exchange the barred currency for lower denomination notes which are still legal tender. What you should know is that the government has also issued an alert that the data with the banks will be scanned by the Income Tax department and the taxman will match the same with your income tax returns filed previously. According to the statement by the authorities, of especial interest will be the data that provides information about who has deposited cash worth over Rs 250,000 between the dates November 10 to December 30 (it is unclear yet if lower amounts deposited will be scanned too). If people have filed their returns dishonestly, then they will be caught and hauled up by the authorities for an explanation. If the answers do not add up, then they may get tagged as tax evaders and will be punished for it suitably.

Rs 500, Rs 1000, rs 500 note ban, rs 1000 note ban, notes ban, income tax filing, narendra modi, income tax returns, India, Income Tax department, atm booths, denomination notes

The immediate penalty will be that the amount due will be taken by the state and to that will be dded a penalty of 200% on the real amount due. Remember, this is being done to get rid of black money in India and as such is a very welcome step. Here below we are providing the table according to the bracket that each individual must pay. It is very comprehensive and must be checked by all concerned to find out what will happen to their case. It will allow people to sleep much more comfortably as it will shake off all fears of having made a mistake somewhere.

Rs 500, Rs 1000, rs 500 note ban, rs 1000 note ban, notes ban, income tax filing, narendra modi, income tax returns, India, Income Tax department, atm booths, denomination notes

It will definitely save you from a notice from the Income Tax department asking you for an explanation. Lastly, be warned, in case of wrongdoing, you may even get sent to jail! So, read on:

Rs 500, Rs 1000, rs 500 note ban, rs 1000 note ban, notes ban, income tax filing, narendra modi, income tax returns, India, Income Tax department, atm booths, denomination notes

Note: Deposits of over Rs 10 lakh that do not match with I-T 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, 1961.
Note: Cess not included
Source: Cleartax.com

While the above is what you must focus on, elsewhere, the country is seeing long lines at ATM booths, which have opened after being closed on PM Modi ‘s order. The same lines were seen yesterday in front of banks as panicked people brought their Rs 500 and Rs 1000 notes to exchange for smaller denomination notes.

  1. M
    Man
    Nov 12, 2016 at 9:25 am
    as fa as I know, w amount deposited will be taxed @ 30% 200% penalty. tax is u/s 68
    Reply
    1. P
      Prity bhushan
      Nov 17, 2016 at 7:03 am
      If I have a joint account with my sister i can deposit 500000 rupees without tax
      Reply
      1. M
        Mark
        Nov 11, 2016 at 7:09 pm
        If I deposit 2 lacks , will there is a issue with IT ? I understand there is no TAX , will IT come and ask me for source of income and proof ? secondly If i deposit 49,000 in multiple bank take for example I have 5 bank account in my name and i deposited 49,000 in each bank will IT sum the money in all my banks and come again to me ?
        Reply
        1. R
          Rajagopalan Vee
          Nov 12, 2016 at 2:55 am
          Your PAN is the key. The total amount in all the accounts will be scrutinized. The IT return net income column should be a reasonably higher figure than the amount you are depositing. But if you are a businessman or professional your chances of defending the income is higher as the Business & Professional expenses are tax exempted. But it is better to deposit the amount in "Your" account & face all the queries rather than trying to put in the account of some one else. We firmly hope amounts less than 2.5 L are really not worth for IT department t to investigate as they will be only wasting their time & energy on trivial & non tax earning accounts.
          Reply
          1. Z
            zed
            Nov 13, 2016 at 12:43 pm
            Yes if all your five accounts are linked by adhar card ur total in case if exceeds 250000 net then u will be liable to pay tax...
            Reply
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