Ministry of Finance has cautioned to take strict action against Tax Evaders using other persons’ Bank Accounts to convert their Black Money into New Denomination Notes.
In its official press statement, Ministry has cautioned person(s) who allows His Or Her Bank Account to be misused for this purpose can be Prosecuted for Abetment under Income Tax Act.
The Union Government has earlier announced that small deposits made in the banks by artisans, workers, housewives, etc. would not be questioned by the Income Tax Department in view of the fact that present exemption limit for income tax is Rs. 2.5 lakh. However, there are some reports received that some people are using other persons’ bank accounts to convert their black money into new denomination notes for which reward is also being given to the account holders who agree to allow their accounts to be used. This activity is reported in case of Jandhan Accounts also.
The Ministry clarified that such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else, the press statement read and further added that the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act.
The Union Government has appealed the people NOT to come in the lure of black money converters and be a partner in this crime of converting black money into white through this method. Statement read
“Unless all citizens of the country help the Government in curbing black money, this mission of black money will not succeed. Also the people who are against the black money should give information of such illegal activities going on to the Income Tax department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized”
However, the genuine persons having their own household savings in cash and depositing the same in the bank would not be questioned.
The Ministry of Finance has appealed every conscientious citizen to join the Government in eradicating menace of Black Money.