200% penalty for income mismatch, banks open on Sunday: What you should know about demonitisation

Mismatch between deposited sum and income declared would attract up to 30% income tax and 200% of tax liability as penalty

The government is closely tracking all cash deposits into banks and has warned that deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 percent penalty in case of income mismatch.

Here is everything you should know

1. 200% penalty The finance ministry on Wednesday warned that any mismatch between the deposited sum and income declared would attract up to 30 per cent income tax and 200 per cent of tax liability as penalty.

The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow.

Any mismatch with income declared by the account holder will be treated as a case of tax evasion. However, Revenue secretary Hashmukh Adhia said small businessmen, housewives, artisans and workers who had some cash lying as their savings at home should not be worried about any tax department scrutiny.

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