JAMMU, Nov 09: With demonetisation of Rs 500 and Rs 1,000 currency notes, the government has directed Income-Tax Department to coordinate with all banks and furnish details of individuals who exchange cash amount of Rs 2 lakh and above.
“A key reason for scrapping these two currency denominations is to curb the huge menace of fake currency, tackle black money and make India a cashless economy,” said a senior I-T department official.
The object was also to make Indians tax complaint, which will eventually lead to higher revenues for government, he added.
The tax department has been asked to keep record of every individual along with his/her details and tally it with the tax filing. Accordingly, the department will impose penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.(Input from Agencies)
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