Late Night, 9 November 2016, India Government made an another important announcement related to cash deposits, as deposits above Rs 2.5 lakhs has to face tax and mismatched income will be treated as a case of tax evasion.
Cash deposits above Rs 2.5 lakhs during the 50-day window to return Rs. 1000 and Rs. 500 currency notes could be taxed, while a 200% penalty would be applied to deposits which do not match with the declared income.
This intervention took place when the government allowed citizens to deposit old Rs. 500 and Rs 1000 currency notes in their bank accounts which had been declared invalid in the country’s historic move against black money, corruption and simulated notes, between November 10 and December 30.
As government earlier said to exchange old currency notes for other denominations, new Rs. 2000 and Rs. 500 currency notes will be introduced on 11 November 2016. This move will help them to look after black money , forge as Rs.500 and Rs. 1000 is widely used in black money and simulated notes are widely spread.