DEPOSITING OR ENCASHING RS.500/- AND RS.1,000/- NOTES. BEWARE !!! THE INCOME TAX DEPARTMENT IS WATCHING YOU


As per the IT department, the physical cash circulation in India is Rs 17 lakh crore and out of this, 88 per cent is Rs 500 and Rs 1,000 notes. Official data suggest that 40 per cent of black money is generated in real estate, while stock market and bullion transactions are other big sources.

  1. The Income Tax department will keep a check on individuals who exchange cash amount of Rs 2 lakh and above.

  2. The objective is to make Indians tax compliant, eventually leading to higher revenues for the government.

  3. The IT department has been asked to keep record of every individual, their PAN card details, and tally it with tax filing.

  4. Accordingly, the department will impose penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.

 

Pan applicant details will be verified from 03-02-2014, before the issue of the PAN CARDS – INCOME TAX DEPARTMENT


Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Dated 24th January, 2013

Press Release

The procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

(Rekha Shukla)
Commissioner of Income Tax (M&TP)
Official Spokesperson, CBDT

The ISSUES the buyer may face to implement this TDS provisions – The rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.


  • Obtaining TAN number for complying with the provisions;
  • Issuance of TDS certificate to the seller;
  • Filing of TDS return quarterly and mention PAN of the seller;
  • Taxes needs to be deposited within the specified time limit with the Government; and
  • May be scrutinized by the TDS officer

The rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.