200% Penalty For Deposits Over Rs 2.5 Lakh, If Mismatch Found; Ecommerce Shuts Down Cash on Delivery #CurrencyBan
As banks reopened today after a gap of one day, people thronged their branches to replace their old currency notes with new ones. Long queues were witnessed outside every bank, as people starved of cash are depositing cash into their accounts, and replacing them with Rs 100 notes.
At an appropriate time, Government has issued a warning for all those who are depositing cash into their accounts: Deposits above Rs 2.5 lakh would be closely monitored.
And, another warning which will surely give hoarders of black money sleepless nights: Any income mismatch found for deposits above Rs 2.5 lakh would invite a penalty of 200%.
Revenue secretary Hashmukh Adhia said yesterday night: “The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,”
He informed that in case IT Dept. finds mismatch in income declared and income deposited, then it will treated as a case of tax evasion. Action would be taken under Section 270(A) of the Income Tax Act, wherein the tax applicable would be charged, besides placing a penalty of 200% on the tax payable amount.
He also added that action would be taken against those jewelers who are selling gold to buyers who don’t furnish their PAN card details.
Rs 12,000 Crore Would Be Spent on Replacing Currency Notes
As per a reply of a PIL, it takes Rs 2.5 to print Rs 500 note, and Rs 3.17 to print a Rs 1000 note. Hence, it shall take Rs. 3,917 crore to print the 1,567 crore Rs. 500 notes in circulation right now, and Rs. 2,000 crore to print the 632 crore Rs. 1,000 notes in circulation currently.
In total, Rs 12,000 crore would be spent by RBI to replace and print new currency notes.
Ecommerce Shuts Down Cash on Delivery Payments
Meanwhile, due to sudden currency ban, Amazon and Flipkart has decided to stop all cash on delivery orders with immediate effect.
Amazon has altogether stopped delivering CoD orders, and for orders placed before November 8th, they are asking their customers to make online payments.
Meanwhile, Flipkart has asked their customers to pay in denominations other than Rs 500, 1000 until new currency notes are introduced.
All ecommerce companies are encouraging their customers to use digital methods of making payments, and to rely less on cash.
How are you coping with the #currencyban? Do let us know by commenting right here!