The above is the latest update in the course of demonetization. Banks and post offices have been mandated to report cash deposits for the period April 1 to November 9 as well. Previously, only deposits during the period 9 November – 30th November (i.e. post demonetization announcement) had to be mandatorily reported.
As per the Pres Release by the department, all cash deposits during the period aggregating to Rs2.5 lakh or more in one or more bank accounts of an individual will have to be reported. For current accounts, all cash deposits aggregating to Rs12.5 lakh or more will have to be reported.
“Finance minister Arun Jaitley in a Facebook post on Sunday stressed that the deposit of a large amount of high denomination currency in banks does not render this money to be legitimate cash. “Black money does not change its colour merely because it is deposited in bank. On the contrary, it loses its anonymity and can now be identified with its owner. The Revenue Department would thus be entitled to tax this money. In any case, the amendment to the Income Tax Act itself provides that the said money, if voluntarily declared or if involuntarily detected, would be liable for differential and high rates of taxation and penalty,” he said.” – Livemint