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60 percent tax on unaccounted deposits

Written by Aravind   |   Posted: 11/25/2016 11:35 AM IST

The cabinet meet has cleared a proposal to tax the unaccounted deposits in the bank at the rate of 60 percent. The decision was taken after banks reported that over Rs. 21,000 crore has been deposited in the zero-balance Jan Dhan accounts in the two weeks after the 500 and 1,000 rupee notes were banned, and the authorities apprehend that it may be the laundered black money.

State Bank of India (SBI) has recieved Rs 21 trillion as deposits in the bank accounts after the demonetisation policy was rolled out by the Prime Minister. SBI chief Arundhati Bhattacharya expressed confidence that the large amount of deposits will boost the banking operations across the nation.

Taxes on unaccounted deposits will be levied at the rate of up to 60 percent (30 percent tax plus 30 percent penalty), higher than the 45 percent levied under the income disclosure scheme (IDS) that was closed on September 30 .

"We would be getting reports of all cash deposited during the period of November 10 to December 30 above a threshold of 2.5 lakh in every account," Revenue Secretary Hasmukh Adhia had said on November 10.

"This would be treated as tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per the section 270(A) of the income-tax act," he had said.

I do not disagree with (the) objectives.. (but it is) a monumental management failure... A case of organised loot and legalised plunder... GDP can decline by about 2 percentage points (and) this is an underestimate.” - Manmohan Singh, former prime minister.

Those who did not consider the generation of so much black money and scams during their regime as blunder are now finding the crusade against black money as blunder.” - Arun Jaitley, finance minister.

By Premji

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Tags : Demonetisation  Income tax  unaccounted deposits  black money  terror funding  

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