Business Mantra News
If cash is deposited in Bank and the person pays advance tax along with interest and surcharge on it then there are no penalty provisions as of now. These deposits may either be shown as income in the current year and even if these are shown as unexplained cash credited in Banks then these will be taxed @ 30% irrespective of IT slab applicable on the income of that person.
This is very clear if we study section 68 & 115BBE of The Income Tax Act, 1961. Same views have been given by many professionals over the social media and even the article in Economic Times website, which says tax officials are also of the same view. The article says “ If the penalty is to be imposed, law needs to be amended retrospectively.
In his speech at Goa, Prime Minister Mr. Modi also hinted that if your parents/relatives have left something for you and you are a good person than you can deposit the related taxes and interest and bring those funds to main stream.
If this stand is clear at an early stage, then lot of money will be deposited in banks and Income Tax Department will also get lot of advance tax.
From this platform, we request our Finance Minister to clarify this issue as soon as possible