Demonetisation : Financial Advise for Deposit amount in your account
Financial Advise :
1. Deposit cash less than Rs. 50000 at one time & 10 lac cash in a year (1.4.16 to 31.3.17) in saving bank account. To avoid Income tax department Notice.
2.Do not deposit cash more than Rs.2 lakh in saving bank account (from 11/11/16 to 31/12/16). If you are non tax payer. To avoid Income tax department Notice.
3. Don't try to be over smart
By depositing cash in your different different saving bank accounts. As for income tax limits (Rs. 200000 & Rs.1000000) those will be considered all together.
4. Till 30th December no limit for depositing cash in bank so people may do a mistake.
5. Pan card must for depositing Rs.50000 /- and more.
6. Don't use Credit Card for shopping more than Rs. 200000 (from 01/04/2016 to 31/03/2017). To avoid Income tax department Notice.
7. Do not panic and rush to the banks or post office for depositing the old notes.You are monitored.
8. Understand the impact. When you go to the bank for depositing the same you first check that whether you have cash balance in your books or not.
9. Any unexplained cash deposit attract tax @30%, interest & 200% penalty.
10. Update your books of accounts immediately to know cash position.
Again do not panic.
Every problems have some solution.
1. Deposit cash less than Rs. 50000 at one time & 10 lac cash in a year (1.4.16 to 31.3.17) in saving bank account. To avoid Income tax department Notice.
2.Do not deposit cash more than Rs.2 lakh in saving bank account (from 11/11/16 to 31/12/16). If you are non tax payer. To avoid Income tax department Notice.
3. Don't try to be over smart
By depositing cash in your different different saving bank accounts. As for income tax limits (Rs. 200000 & Rs.1000000) those will be considered all together.
4. Till 30th December no limit for depositing cash in bank so people may do a mistake.
5. Pan card must for depositing Rs.50000 /- and more.
6. Don't use Credit Card for shopping more than Rs. 200000 (from 01/04/2016 to 31/03/2017). To avoid Income tax department Notice.
7. Do not panic and rush to the banks or post office for depositing the old notes.You are monitored.
8. Understand the impact. When you go to the bank for depositing the same you first check that whether you have cash balance in your books or not.
9. Any unexplained cash deposit attract tax @30%, interest & 200% penalty.
10. Update your books of accounts immediately to know cash position.
Again do not panic.
Every problems have some solution.
Source:sa post blog
Govt. allowed central staff to draw upto Rs 10 thousand in cash as advance salary
The government has allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks, - Economic Affairs Secretary Shaktikanta Das A number of measures also announced such as, Farmers may withdraw cash upto Rs 50 thousand.
New Delhi, Nov 17 (PTI) With cash crunch following demonetisation impacting agri sector, the government today eased guidelines for farmers by allowing them to withdraw up to Rs 50,000 cash per week from bank.
Besides, it has also extended the deadline for payment of crop insurance premium by 15 days and permitted APMC-registered traders to withdraw up to Rs 50,000 per week.
This steps will ensure that sowing takes place adequately in the Rabi season and enough cash is available to the farmers to buy fertiliser, seeds and other inputs, Economic Affairs Secretary Shaktikanta Das told reporters here.
"The government has decided to permit the farmers to draw up to Rs 25,000 per week against the crop loan sanctioned and credited to their accounts, subject to the limits...and this will also apply to Kisan Credit Cards," he said.
These accounts have to be in the name of the concerned farmers, the accounts will have to be KYC compliant, Das said.
Besides, if the farmers receive payments either by way of cheques or RTGS into the bank accounts, they can withdraw up to Rs 25,000 per week, Das said.
Similarly, the registered traders with the Agricultural Produce Marketing Committee (APMC) markets also will be permitted to draw Rs 50,000 per week to meet various cash requirements like payment of wages to workers and other sundry expenses.
"So, this will facilitate smooth procurement process and help farmers to sell their produce without any difficulty," Das said.
The government has also allowed its Group C employees, including from PSUs, defence and railways, to get salaries up to Rs 10,000 in cash in advance which will be adjusted against their November salary. "It is expected that this will relief pressure on banks," Das said.
Following the demonetisation of 500 and 1,000 rupee notes on November 8 by Prime Minister Narendra Modi, the government allowed withdrawal of up to Rs 24,000 per week per person through cheque and Rs 2,500 from ATMs.
source:potools
Banks, Post offices to report cash deposits of over Rs 2.5 lakh to I-T
The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window provided to tender the scrapped 500 and 1000 rupee notes.
As per a notification issued today, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period November 9, to December 30, 2016.
These entities will also have to report cash deposits during the period aggregating to Rs 12.50 lakh or more, in one or more current account of a person.
The Finance Ministry has notified the amended Rule for filing of Annual Information Return (AIR) report by banking company, cooperative bank and post offices on account of aggregate cash deposits in one or more current account of a person.
Banks and post offices now have to file a statement of financial transaction in respect of these transactions on or before January 31, 2017, the notification said.
Earlier, they were required to report to the I-T Department only when cash deposits in an account exceeded Rs 10 lakh in one full year.
In view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the Revenue Department has issued fresh set of instructions.
In a major assault on black money, counterfeit notes and terror financing, Prime Minister Narendra Modi had on November 8 announced demonetisation of high value currency notes of Rs 1000/500 and asked the public to deposit them in banks by December 30.
Since then, seemingly unending queues of people trying to deposit and exchange their scrapped currency notes are being witnesses at banks and post offices.
Tax department officers are of the view that the 50-day window provided to people to deposit or exchange notes should not be misused and hence the need to keep a tab on such high value deposits.
Those depositing large amounts of unaccounted money will have to face the consequences under tax laws, which provide for a 30 per cent tax, 12 per cent interest and a 200 per cent penalty.
"CBDT has brought two-fold amendment casting a reporting responsibility on the taxpayer as well as the bank, thereby ensuring that bank doesn't let go off the non-compliant taxpayers," Nangia & Co Managing Partner Rakesh Nangia said.
Source : The Economic Times
