The Cabinet is believed to have discussed amending laws to levy close to 60 per cent income tax on unaccounted deposits in banks above a threshold post demonetization of high-denomination currency notes. There have been various statements on behalf of the government ever since the demonetization scheme was announced on November 8, which has led to fears of the taxman coming down heavily on suspicious deposits that could be made to launder black money. As for those black money holders who did not utilise the window, they would be charged a higher rate which could be close to 60 per cent that the foreign black money holder had paid last year. The Income Tax Department had previously warned that cash deposits above Rs 2.5 lakh threshold post demonetization decision could attract tax plus a 200 per cent penalty in case of income mismatch. This had instilled fear in people with reports of the banned currency even being destroyed.

Source: dna November 24, 2016 17:02 UTC