The cabinet meet, summoned at a very short notice, comes amid reports of high tax penalty terrifying people from putting their cash savings into the formal banking system. Photo: Hindustan TimesNew Delhi: The Narendra Modi cabinet on Thursday night is believed to have discussed amending laws to levy close to 60% income tax on unaccounted deposits in banks above a threshold after the demonetisation of high-denomination currency notes. 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% that foreign black money holders had paid last year. Also read: New income tax rules to curb unaccounted cashThe Cabinet meeting, summoned at a very short notice, comes amid reports of the high tax penalty scaring people from putting their cash savings in the formal banking system. The Income Tax Department had previously warned that cash deposits above Rs 2.5 lakh threshold after the demonetisation could attract tax plus a 200 % penalty in case of income mismatch.

Source: Mint November 24, 2016 13:18 UTC