Hobbling with a paucity of staff, the income tax (I-T) department might find it difficult to assess more than 600,000-700,000 cases a year, though the government has suggested that people depositing a minimum of Rs 2.5 lakh cash in their bank accounts during the ongoing demonetisation drive will come under scrutiny.
On Sunday, however, the department warned people against depositing their unaccounted old currency in someone else’s bank account. The tax department said it had decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years.
The demonetisation drive started on November 8, with Prime Minister Narendra Modi announcing that the old series Rs 500 and Rs 1,000 currency notes would be illegal from the next day. Those who possess money in these denominations can get it changed for legal tender from their banks till December 31. However, those depositing Rs 2.5 lakh or more in the old currency would come under the scanner of the I-T department, the government has claimed.
On Sunday, however, the department warned people against depositing their unaccounted old currency in someone else’s bank account. The tax department said it had decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years.
The demonetisation drive started on November 8, with Prime Minister Narendra Modi announcing that the old series Rs 500 and Rs 1,000 currency notes would be illegal from the next day. Those who possess money in these denominations can get it changed for legal tender from their banks till December 31. However, those depositing Rs 2.5 lakh or more in the old currency would come under the scanner of the I-T department, the government has claimed.
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