Going to the bank with Rs 500, 1000 notes? Beware, the Income Tax department is watching

Asia World

Are you going to the bank with Rs 500, 1000 notes to deposit it to your account? Be careful, smart about it, because the Income Tax department is watching.

Prime minister Narendra Modi dropped a bomb yesterday while addressing the nation through Doordarshan. He announced that Rs 500 and Rs 1000 banknotes are being withdrawn from the financial system starting 00:00 hours November 9, as a strict action against rampant counterfeit currency floating in India and black money.

Modiji has given 50 days, from November 10 till December 30, to deposit these notes to your bank account. Banks and ATMs, however, will remain shut today, that is on November 9, and will be operational from November 10. ATMs will not accept cash deposits, all cash deposits will have to be made from bank branches itself. There will be no changes in payments using cheques or any non-cash mode of payments.Â

If you are planning to go to the bank to deposit cash in the coming days, beware. The Income Tax department is watching you.

THE INCOME TAX DEPARTMENT IS WATCHING YOU!

The Income Tax department will keep a check on individuals who exchange cash amount of Rs 2 lakh and above.
The objective is to make Indians tax compliant, eventually leading to higher revenues for the government.
The IT department has been asked to keep record of every individual, their PAN card details, and tally it with tax filing.
Accordingly, the department will impose penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.
As per the IT department, the physical cash circulation in India is Rs 17 lakh crore and out of this, 88 per cent is Rs 500 and Rs 1,000 notes. Official data suggest that 40 per cent of black money is generated in real estate, while stock market and bullion transactions are other big sources.
In 2015, investigative agencies and the Reserve Bank of India recovered 6,32,000 fake currency notes worth Rs 30.43 crore.
In 2015, various intelligence agencies filed 788 cases of smuggling and circulation of fake currency notes, in which at least 816 people were accused. Also, over 43 per cent of the fake currency recovered was just from Delhi and Uttar Pradesh.