Demonetisation: 7-year jail term for depositing black money
- Evading tax will amount to seven years of jail term
- Action will also be taken against the person depositing others money
- Read on to see the terms and condition for getting imprisoned, fined
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The government will also take action against those who deposit others money in their account.
“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 somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act, stated the Ministry.
When the currency ban was announced, the government had said deposits up to ₹2.50 lakh will not come under the scanner of the IT department. Any amount below ₹2.50 lakh was exempted from tax.
But in the case of Jan Dhan accounts, the maximum amount the account holder could deposit was ₹50,000 without any tax.
Now, the ministry has cautioned people depositing black money and those helping them do so to restrain from any such activity.
The government’s deadline to deposit any amount of money (if above ₹2.50 lakh, with 200% fine tax) will end on December 31.
