The government is looking to bring a provision of voluntary disclosure under the demonetisation scheme, TV reports suggest. The voluntary disclosure plan will have a 2-slab penalty structure. This twin penalty structure will be for cash deposits made above a certain threshold after November 8. According to a CNBC-TV 18 report, one structure under the voluntary disclosure provision will attract a 50% tax + a 4-year lock in period. The second structure would have a 60% tax penalty for undisclosed income. The tax component will be 45% + 15% penalty + 25% in zero-rated bond that can be encashed after 20-25 years, the channel reported.
The Cabinet is believed to have discussed amending laws to levy close to 60% income tax on unaccounted deposits in banks above a threshold post demonetisation of high-denomination currency notes. The move comes amid banks reporting over Rs 21,000 crore being deposited in zero-balance Jan Dhan accounts in two weeks after the 500 and 1,000 rupee notes were banned, which authorities apprehend may be the laundered blackmoney.
Meanwhile, in some relief to the common man, the use of old Rs 500 notes for certain transactions has been extended till December 15. Also, the Modi government has added some categories for which the old Rs 500 notes can be used, while imposing restrictions on the exemptions list as well. Payments for transactions under all the exempted categories will now be accepted only through old Rs 500 notes. Payments towards pre paid mobile top-up to a limit of Rs 500 per top-up, payment of fees in central or state government colleges, payment of school fees up to Rs 2000 per student in central government, state government, municipality and local body schools, and payments for transactions under all the exempted categories will now be accepted only through old Rs 500 notes.
The Rs 1000 banknote is no longer legal tender money, even for use in public utilities and other exempted categories that the government had announced. This means that you can no longer use it for purposes of buying petrol etc. The only use of the Rs 1000 note is to deposit it in your bank account!