Face punishment if deposit others' black money into your bank account

New Delhi : Warning a common man, especially housewives, Jan Dhan account holders and artisans if they would be found guilty of misusing bank accounts, they would be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30.

The directive came after the reports that some are using other's bank accounts to convert their black money into white i.e. in new denomination notes.

It may be mentioned here that the government had earlier said deposits up to Rs 2.5 lakh in bank accounts would not come under tax scrutiny as it is within the tax exemption limit. In the case of Jan Dhan account, the holder can deposit up to Rs. 50,000.

The ministry in a statement said, "income tax and penalty would be subjected if it is found that the amount deposited in the account was not of the account holder but of somebody else. Also, the person can be prosecuted for abetment under the Income Tax Act".

The government had earlier warned the black money holders that they would be penalized upto 200 percent for a larger amount and also the income tax would be deducted.

The government urged the citizens of the country to help the government in curbing black money.

Further the government in its statement also requested the people to provide information of such illegal activities to the I-T department so that immediate and strict action could be taken against the culprit and such illegal transfer of cash can be stopped.

"Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it," it added.

It may be recalled here that following the demonetisation announcement of November 8, people have been queueing up in front of banks to convert and deposit the now-defunct 500 and 1,000 rupee notes.

 

The tax department has already made quoting of PAN mandatory if cash deposits during the 50-day period aggregate Rs. 2.5 lakh or more in bank accounts.