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  • Putting black money in your account may put you in trouble, says Govt.

    November 19, 2016

    The government on Friday warned people not to let anyone use their bank accounts for depositing black money during the 50-day window till December 30.

    The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.

    The misuse has been reported in case of Jan Dhan accounts also.

    The government had earlier said that small deposits made in bank accounts by artisans, workers, housewives would not come under tax scrutiny if it is within the tax exemption limit of Rs 2.5 lakh. In the case of Jan Dhan account, the holder can deposit up to Rs 50,000.

    A finance ministry statement warns people that "such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act".

    The government has asked people not to be lured into conversion of black money and become a partner in the crime of converting black money into white through this method.

    However, genuine people who have their own household savings in cash would not be questioned, the ministry said.

    "Unless all citizens of the country help the government in curbing black money, this mission of black money will not succeed," the official statement said.

    It also asked people to provide information of such illegal activities to the I-T department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized.
    "Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it," it added.
     
    The government has said black money deposited in bank accounts during the 50-day period will be subject to tax, interest and 200 per cent penalty.

    Following the demonetisation announcement of November 8, people have been queueing up in front of banks to convert and deposit the now-defunct 500 and 1,000 rupee notes.
     
    The tax department has already made quoting of PAN mandatory if cash deposits during the 50-day period aggregate Rs 2.5 lakh or more in bank accounts.

    OUR TAKE

    The very purpose of these steps was to stop black money and its effects from spreading. The whole nation was sick of this and on the very promise that they will root out black money from the country, the ruling party won the elections. But the promise would amount to nothing if the public did not help the government out. 


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