Misuse of earlier announcement by the Government that small deposits made in the banks by artisans, workers, housewives, etc. would not be questioned by the Income Tax Department within the limit of Rs. 2.5 lakh will not be allowed any more, warned the government,
There are some reports that some people are using other persons’ bank accounts to convert their black money into new denomination notes for which reward is also being given to the account holders who agree to allow their accounts to be used. This activity is reported in case of Jandhan Accounts also, said the note.
“It is hereby clarified that such 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 of somebody else. Also the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act,” said the government in a statement on Friday.
However, the genuine persons having their own household savings in cash and depositing the same in the bank would not be questioned, it quickly added.
“The people are requested NOT to come in the lure of black money converters and be a partner in this crime of converting black money into white through this method. Unless all citizens of the country help the Government in curbing black money, this mission of black money will not succeed,” it said.
Also the people who are against the black money should give information of such illegal activities going on to the Income Tax department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized, said the statement. “Black money is a crime against humanity. We urge every conscientious citizen to help join the Government in eradicating it,” it said.