Clarifying on action of Income Tax Department in respect of old currency deposited in banks, Revenue Secretary Hasmukh Adhia has assured that there will be no harassment by Income Tax Department for small deposits in banks. <br/><br/>Replying to the questions, Mr Adhia said, small businessmen, housewives, artisans with small amount of deposits up to 2 lakh rupees need not worry since the amount would be below the taxable income. <br/><br/>He said, IT Department would be getting reports of all cash deposited during the period from 10th November to 30th December above a threshold of 2.5 lakh rupees in every account. Mr Adhia said, if huge amount of cash above 10 lakh rupees is deposited in a bank account, which do not match with the income declared, it will be treated as a case of tax evasion. <br/><br/>He added that tax amount plus a penalty of 200 per cent of the tax payable would be levied in such cases. The Revenue Secretary said instructions have been given to the field authorities to check with all the jewelers to ensure that people buying jewellery provide their PAN numbers.

Revenue Secretary Hasmukh Adhia has assured that there will be no harassment by Income Tax Department for small deposits in banks. Replying to the questions relating to action by Income Tax Department in respect of old currency deposited in banks, Mr Adhia said, small businessmen, housewives, artisans with small amount of deposits up to 2 lakh rupees need not worry since the amount would be below the taxable income. <br/><br/>He said, IT Department would be getting reports of all cash deposited during the period from 10th November to 30th December above a threshold of 2.5 lakh rupees in every account. Mr Adhia said, if huge amount of cash above 10 lakh rupees is deposited in a bank account, which do not match with the income declared, it will be treated as a case of tax evasion. <br/><br/>He added that tax amount plus a penalty of 200 per cent of the tax payable would be levied in such cases. The Revenue Secretary said instructions has been given to the field authorities to check with all the jewelers to ensure that people buying jewellery provide their PAN numbers.