A day after Prime Minister Narendra Modi took the country by surprise with the demonetisation of Rs 500 and Rs 1,000 notes, Finance Minister Arun Jaitley today said the decision would “not nudge but push” India towards a cashless economy.
He made it clear that deposits of now-defunct Rs 500 and Rs 1,000 currency notes in bank accounts would not enjoy immunity from tax and that the law of the land would apply on the source of such money. “India cannot afford to live with black money any longer. Honesty, integrity and ethical conduct are requirements for India’s development,” he said.
He said a number of steps had been taken to curb black money and track ‘benami’ transactions and that the new-series bank notes of Rs 500 and Rs 2,000 would be available at banks and post offices from tomorrow. These would have micro chips.
“Tax collections in the medium term will increase and bank deposits will rise,” Jaitley said on withdrawal of higher denomination currency. Terming reports of people profiteering from converting withdrawn currency notes into lower denominations as “exaggerated”, he asked: “Where have these come from?”
“It should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of the land will apply (on source of fund). If the money is legitimate, previously withdrawn from bank or earned legally, saved and disclosed earlier, there is nothing to worry about,” he said.
He said housewives and farmers with genuine savings need not worry about depositing cash. “People need not worry about the small amounts — Rs 25,000, Rs 30,000 or Rs 50,000 — lying at home. They can go to banks,” he said.
He said for the initial one or two weeks replacements could be less, but things would improve thereafter.
He appealed to the people to be patient, promising that the long-term advantages would be “very significant”.
Rs 2.5 lakh-plus deposits to face tax, penalty
Deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 pc penalty in case of income mismatch
Any mismatch with income declared by the account holder will be treated as a case of tax evasion
The tax department would match this with income returns filed by depositors
Jewellery buyers have to provide PAN
“To buy jewellery one has to give PAN; instructions have been issued to jewellers. Action will be taken against violators,” Hashmukh Adhia, Revenue Secretary.
No highway toll fee till Nov 11 midnight
To deal with the chaos at toll plazas, the government has suspended fee collection on national highways till the midnight of November 11.
Leaders speak
Chaos everywhere, millions affected
Please save people from this disaster. Roads are closed, markets shut, patients not being admitted to private hospitals, millions affected. Chaos everywhere… This is like an all-India unannounced strike. — Mamata Banerjee, West Bengal Chief Minister
Pakistan’s fake note press shut
The printing press in Karachi and Peshawar will now have to shut down due to demonetisation of Rs 1,000 and Rs 500 notes… The action will curbing terror funding and circulation of fake Indian currency notes. — Kiren Rijiju, Union Minister
Great decision, will curb fiscal crime
This is a great decision and will have far-reaching impact. It will curb economic crime and the resources for Naxalism will be curbed by this. The government should avoid releasing currency notes in 500 and 1,000 denomination in future. — Ramdev, yoga guru
Move welcome, but common man hit
Although it is a welcome announcement, we could only see ordinary people, small traders, auto rickshaw drivers teaming up in the streets as there are no takers for the invalidated Rs 500 notes.
He made it clear that deposits of now-defunct Rs 500 and Rs 1,000 currency notes in bank accounts would not enjoy immunity from tax and that the law of the land would apply on the source of such money. “India cannot afford to live with black money any longer. Honesty, integrity and ethical conduct are requirements for India’s development,” he said.
He said a number of steps had been taken to curb black money and track ‘benami’ transactions and that the new-series bank notes of Rs 500 and Rs 2,000 would be available at banks and post offices from tomorrow. These would have micro chips.
“Tax collections in the medium term will increase and bank deposits will rise,” Jaitley said on withdrawal of higher denomination currency. Terming reports of people profiteering from converting withdrawn currency notes into lower denominations as “exaggerated”, he asked: “Where have these come from?”
“It should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of the land will apply (on source of fund). If the money is legitimate, previously withdrawn from bank or earned legally, saved and disclosed earlier, there is nothing to worry about,” he said.
He said housewives and farmers with genuine savings need not worry about depositing cash. “People need not worry about the small amounts — Rs 25,000, Rs 30,000 or Rs 50,000 — lying at home. They can go to banks,” he said.
He said for the initial one or two weeks replacements could be less, but things would improve thereafter.
He appealed to the people to be patient, promising that the long-term advantages would be “very significant”.
Rs 2.5 lakh-plus deposits to face tax, penalty
Deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 pc penalty in case of income mismatch
Any mismatch with income declared by the account holder will be treated as a case of tax evasion
The tax department would match this with income returns filed by depositors
Jewellery buyers have to provide PAN
“To buy jewellery one has to give PAN; instructions have been issued to jewellers. Action will be taken against violators,” Hashmukh Adhia, Revenue Secretary.
No highway toll fee till Nov 11 midnight
To deal with the chaos at toll plazas, the government has suspended fee collection on national highways till the midnight of November 11.
Leaders speak
Chaos everywhere, millions affected
Please save people from this disaster. Roads are closed, markets shut, patients not being admitted to private hospitals, millions affected. Chaos everywhere… This is like an all-India unannounced strike. — Mamata Banerjee, West Bengal Chief Minister
Pakistan’s fake note press shut
The printing press in Karachi and Peshawar will now have to shut down due to demonetisation of Rs 1,000 and Rs 500 notes… The action will curbing terror funding and circulation of fake Indian currency notes. — Kiren Rijiju, Union Minister
Great decision, will curb fiscal crime
This is a great decision and will have far-reaching impact. It will curb economic crime and the resources for Naxalism will be curbed by this. The government should avoid releasing currency notes in 500 and 1,000 denomination in future. — Ramdev, yoga guru
Move welcome, but common man hit
Although it is a welcome announcement, we could only see ordinary people, small traders, auto rickshaw drivers teaming up in the streets as there are no takers for the invalidated Rs 500 notes.
