Banks given 50 day window to tender demonetised currency
Posted on: 12/Nov/2016 3:29:56 PM
The Income Tax Department has asked banks to report all cash deposits exceeding Rs 2.5 lakh during the 50-day window provided to tender the now-defunct 500 and 1000 rupee notes. In the past, banks were required to report to the I-T Department only when cash deposits in an account exceeded Rs 10 lakh in one full year.
A top official in the department said, But in view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the Revenue Department has issued fresh set of instructions. The attempt will be not to harass honest citizens who are free to tender all of their legal, old high-denomination currency savings in their bank accounts and get new ones. But the window provided to them will also be not allowed to be misused. The Income Tax Department is keeping a close eye on all high-value deposits.
The Ministry of Finance came out with newspaper advertisements assuring people that their hard earned money is safe and that depositing junked Rs 500/1,000 notes of up to Rs 2.50 lakh in bank accounts will not be reported to the tax department. The Ministry also cautioned people against depositing the money of unknown people in their own accounts or falling prey to cheats, thugs and rumour mongers. Besides, farm income continues to remain tax free and can be easily deposited in bank. Small businessmen, housewives, artisans, workers can also deposit cash in their accounts without any apprehensions.
