Demonetisation in India: Ever since demonetization of Rs 500 and Rs 1000 notes has been done by the government, the masses stand shaken and the black money hoarders are baffled as they try to find some way out to avoid coming under the scanner of the Income Tax Department.
Finance Ministry warns masses against unaccounted deposits made into another individual’s account after the coming of Demonetisation in India
Many individuals have been depositing their money into the savings account of their relatives or friends after the coming of demonetization.
To this, the finance ministry has said in a statement, “It is hereby clarified 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 Income Tax Ac.”
The Finance Ministry had earlier stated that the small amount deposits done by the housewives, artisans, and labor class will not be questioned by the Income Tax department given the deposit is under the threshold limit of 2.5 lakh rupees. But in case the individual is indulging in the malpractice of using another person’s account to deposit their hoarded, both will come under the scanner of the income tax department.
