Rs.500-1000 Notes Ban - FAQs

note ban
Ques 1. I have 1 crore rupees in cash. Do I have to pay 200% penalty, if I deposit the amount in a bank?
Ans. (i) You can deposit your money in a bank. But if the amount exceeds 2.5 lakh, then the bank will inform Income Tax department.
IT department will check your tax return. If the amount is more than the declared income, then the penalty will be levied. The penalty will be 200% of the tax. 
(ii) If your money is undeclared, then 30% income tax will be imposed and then 200% of this 30% tax, i.e. 60 Lakh will be deducted as penalty. It means you will get only 10 lakh rupees.

Ques 2. If  Rs. 1 crore is undeclared income and I don't deposit in the bank, then what will happen?
Ans: It is of no use as Rs. 500 and Rs. 1000 currency is demonetized and If Income Tax raid is conducted, then you will be trapped.

Ques 3. If I divide Rs. 1 into 2-2 lakh and then deposit them in different bank accounts, then will it attract any penalty?
Ans: It is possible, but Income Tax Department is prepared to tackle these kinds of cases. The department is keeping close eyes on these kinds of transactions. If your previous returns are checked, then the source will be asked.

Ques 4. My son got married two days ago and we got Rs. 5 lakh as shagun in 500/1000 notes, what should I do now?
Ans: You can exchange all the notes, but you have to present all the proofs of marriage viz. Wedding Invitation Card, bills of caterers and marriage hall. Income Tax officer will ask about the source of a gift more than Rs. 1 lakh and who gave how much money.

Ques 5. I sold my land for daughter's marriage and got Rs. 10 lakh in cash and I also borrowed some money, what can I do now?Ans. Old notes will not be accepted. You have to deposit the amount in the bank. You must have the documents if you sold your land. The amount should be mentioned on the documents. You need to show the copy of all the documents related to dealing and also tell the source of borrowing.

Ques 6. I sold my property according to collector guidelines. The payment was made partially and cash and partially through cheque. What should be done with cash?
Ans: If the amount more than that of mentioned in the documents, then it will be considered black money. It will attract tax as well as penalty.

Ques 7. I am a senior citizen and I use to keep cash at home. I have Rs. 3 lakh with me. what should I do?
Ans: Open a bank account and deposit the money. Generally, the deposited amount is considered as the current year's income. If your money is of the previous year, then you will be asked the source of your income otherwise the money will be considered black money.

Ques 8. Being a small businessman, I usually keep Rs. 3-4 lakh at home. Would I have to pay income tax on this money?
Ans: The limit of keeping tax is decided according to your turnover. If your bank account details show all the daily transactions, then you don't need to worry. If you have received money and it is not registered in your account, then the penalty will be imposed.

Ques 9. An agent offered me to exchange notes for some commission, what to do?
Ans: Don't get trapped. Banks are supplied with new currency every day. Wait for a couple of days to save yourself from paying commission.

Ques 10. Will the government take more steps against black money holders?
Ans: Absolutely yes! there is a limit to keep cash according to the collection of the companies. It can be decreased. If more cash is found with you, then you are in a serious trouble. The government has asked about the gold purchase from the people earning Rs. 50 lakh or more. The government has all the records. Strict actions can be taken in future.

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