The government is planning to amend the Income Tax Act and introduce provisions to tax and penalise those who deposit old notes into their bank accounts that they cannot account for. However, if they declare the money as unaccounted while depositing it in the bank, the tax would be 50%, sources in finance ministry, who did not wish to be named, told HT. Sources in the income tax department explained that the lowering of the tax amount was to pre-empt litigation. “Any income wealth mismatch could always be shown in the income tax return and for that 30% tax has to be paid. “Amending the Income Tax Act was necessary to ensure that tax notices are not challenged in courts.

Source: Hindustan Times November 26, 2016 08:57 UTC