Amidst the breeze of demonetisation which has swept away the whole nation, there are new developments making way for each new day. Guidelines restricting people on withdrawals, deposit, exchange has been totally abstained Over-the Counter at bank branches.
Demonetisation is indeed a well planned move. To curb corruption and menace of Black money , this move was highly needed. The Hon’ble Prime Minister has undoubtedly taken a big step in the history of India .He confessed himself that there would be pains to bear but the final outcome would be worthwhile.
On Thursday,the Union Cabinet cleared a proposal to amend the Income-Tax Act to levy close to 60% (30% tax plus 200% penalty)deduction on unaccounted deposits in banks above the given threshold of Rs.2,50,000.
The decision was made on purpose. Owing to a surge in deposits of nearly about Rs.20,000 crore in Zero-balance Jan Dhan accounts post the central government announced the demonetisation of Rs 500 and Rs 1,000 currency notes, the government initiated this move. Alarmingly , these deposits are half a fraction of the deposits made in these accounts from the time they were opened(Oh! A lot of suspicion brewing up).
There have been various statements on behalf of the government ever since the demonetisation scheme was announced on November 8. Suspicions of the tax department heavily on suspicious deposits that could be made to launder black money.
Sources said the government was keen to tax all unaccounted money deposited in bank accounts after it allowed the banned currency to be deposited in bank accounts during a 50-day window from November 10 to December 30. Actions are being taken to avoid non –compliance of existing I-T Act provisions,the move is aimed at preventing holders to proliferate in numbers.
There is a possible prosecution in cases where black money holders took shrewd advantage of the 50-day window for depositing the currency notes of Rs.500, Rs.1000 notes.
If sources are to be believed that the government may come out with a deposit scheme or an instrument like bond where the cash savings in the banned notes could be deposited.
As for those black money holders who did not come clean , there are plethora of guidelines and frameworks being set up. This is exactly the rate that the foreign black money holder had paid last year.The current scenario is : higher tax rate clubbed with increased penalty is what deters the public to deposit money, more than any other reason.