New Delhi, Nov 11 The abolishing of the Rs 500 and 1,000 note has created a lot of panic among those who have a large amount of unaccounted cash. What is more important is that all deposits above Rs 2.5 lakh are directly under the scanner of the Income Tax Department.
Those making deposits of less than Rs 2.5 lakh have nothing to worry about. The government has also decided to track buying of jewellery. All those buying jewels will have to mandatorily provide their PAN number.
Here is an FAQ on what to expect while depositing cash and buying jewellery.
What if I am depositing cash below Rs 2.5 lakh?
Many have cash up to Rs 2 lakh at their homes. Revenue secretary Hasmukh Adhia says they would be getting reports of all cash deposits made between November 10 and December 30th. Cash deposits below Rs 2.5 lakh will not be under the taxable income and hence there would be no problems.
Will the department track my purchase at a jewellery shop?
Yes all purchases at a jewellery shop will be tracked. The jeweller has been asked to collect the PAN number of the buyer. The number of the buyer will be checked by the department. Action will be taken against those jewellers who fail to collect PAN numbers. This move was introduced as many people are buying jewellery now.
What if there is a mismatch in income declared and deposit?
All amounts above Rs 2.5 lakh being deposited would be tracked. If amounts above Rs 10 lakh is being deposited and there is a mismatch with income declared then penalty of 200 per cent of the tax would follow under Section 270(A) of the Income Tax Act.