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Business News/ Politics / Policy/  Banks get Rs7 trillion in deposits above 2 lakh since 8 Nov
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Banks get Rs7 trillion in deposits above 2 lakh since 8 Nov

A total of Rs7 trillion deposited in large sums with individual depositors depositing Rs3-4 trillion since 8 November

People think that simply because they have put money in bank will render it white. This is a wrong perception, says the official. Photo: MintPremium
People think that simply because they have put money in bank will render it white. This is a wrong perception, says the official. Photo: Mint

New Delhi: Armed with information about Rs7 trillion deposits made by some 60 lakh individuals and companies, the government on Thursday warned it would haul up anyone unable to show legal means for the money, saying that merely depositing notes in bank does not convert black money into white.

Top officials said while the government will not hound any genuine depositor, it will not hesitate to litigate at any forum to catch black money holders trying to convert black money into white.

After demonetisation, unaccounted wealth holders have an option to avail of a tax evasion amnesty scheme, Pradhan Mantri Garib Kalyan Yojana (PMGKY) and pay their dues, failing which the government will surely catch them, the officials said.

“People are thinking that money has come into the banking system and it has all become white. This is not so. We have been getting daily information of all the deposits above Rs2 lakh, Rs5 lakh and the number and amount deposited and we have been collating this information with past information about the same person," a top government official told PTI.

“So, there is a huge scope for taxing now which has arisen and we do hope that people will understand that simply because they have put in bank it has become white that is not the case. We do hope that people themselves will come forward to participate in the scheme. But if they don’t, they are not going to be happy," the official further said.

The tax department is armed with systems to track those with multiple banks accounts as well as those who are depositing in accounts of others and tax department will not leave anyone who is trying to evade taxes, he added.

“Even if you take deposits of more than Rs2 lakh, we have information about more than 60 lakh individuals, companies and institutions who have deposited more than Rs7 trillion of money. That’s an astonishing number. We will be looking at it. For individuals the deposit figure would be Rs3 to Rs4 trillion. We do expect a lot of revenue buoyancy because of this either in this year or in subsequent years but nobody will go scot-free," the official said.

Following the demonetisation of Rs500 and Rs1,000 notes on 8 November, government has come out with PMGKY under which people can disclose unaccounted cash and come clean by paying 50% tax. Besides the scheme provides for a mandatory deposit of 25% of such income in the zero-interest bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years.

PMGKY commenced on 17 December and shall remain open for declarations and deposits up to 31 March 2017.

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Published: 29 Dec 2016, 06:12 PM IST
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