Changing its earlier stand that artisans, workers and housewives will not be prosecuted for depositing old currencies of Rs 500 and Rs 1,000 below the taxable income level of Rs 2.5 lakh, the finance ministry on Friday announced that they may also be questioned.
In yet another U-turn, revenue secretary Hasmukh Adhia said that these sections may also be questioned if they are found to have helped someone in turning his black money into white. The finance ministry came up with the decision after it reportedly received information regarding such acts being carried out by some people in some parts of the country.
It is hereby 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 holder was not of the account holder but of somebody else. Also the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax ActHasmukh Adhia
The ministry, meanwhile, clarified that people who deposit their own household savings will not be questioned.
In the statement, the ministry also urged citizen of the country to not help those with black money in turning it to the white.
“Unless all citizens of the country help the government in curbing black money, this mission...will not succeed,” it said.
It further asked people to pass information to the concerned departments about such illegal activities so that the fight against black money can be realised very easily.