Exchange of Old Currency Notes - Beware Big Brother is Watching

By Vijay Kumar

THE Revenue Secretary tweets:

1. We would be getting reports of all cash deposited during 10th Nov to 30th Dec. 2016 above threshold of Rs.2.5 lac in each A/C.

2. Income Tax department would do matching of this with income returns filled by the depositors. And suitable action may follow.

3. If cash amount of above Rs10 lac is deposited in a bank A/C, not matching with declared income, same will be treated as tax evasion

4. In such case, tax amount plus a penalty of 200% of the tax payable would be levied as per Section 270(A) of the income tax Act

5. A person buying jewellery has to give his PAN number; Instructions being issued to field authorities to check it with all jewellers

6. Action to be taken against those jewellers who fail to take PAN numbers from buyers to ensure this requirement is not compromised

7. Cash deposits of jewellers would be scrutinized against the sales made to check whether they have taken PAN nos of buyers or not