Saturday, November 19, 2016

Govt. may prosecute people depositing third party black money in their bank accounts

As announced by Government earlier small deposits made in the banks by artisans, workers, housewives, etc., would not be questioned by the Income Tax Department. But some reports show 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.

To avoid tax evasion, it has been clarified by the Govt. that such activity can be made subject to income tax and penalty if it is established that the amount deposited in the account holder was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for the purpose of converting black money can be prosecuted for abetment under Income Tax Act.

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