When you look at the present ongoing scrutiny assessments for economic 12 months 2016-17, one of many components of verification, especially in instances of specific taxpayers, happens to be compared to the origin of money deposited by taxpayers within their bank reports. The explanation with this would be the fact that big money deposits had been made through the 12 months by numerous taxpayers during the time of demonetization.
What’s the implication if a person is not able to spell out such money deposits? Tax is leviable on such deposits at 60% (plus surcharge and cess), along with interest at 12percent per year from April 2017 (which could add up to 33% till December 2019). Besides, a penalty may be levied at 200per cent for the number of income tax. Efficiently, consequently, a taxpayer may find yourself paying 213percent regarding the level of deposit by means of fees and penalty, besides relevant surcharge and cess. Not just that, in the event that quantity is big, the taxpayer faces a possible prosecution also, with a possible for rigorous imprisonment from 3 months to seven years, in addition to a fine. A stiff punishment indeed for income tax evaders. Continue reading