Deposits of old notes in banks not to enjoy tax immunity: FM

TIL Desk/Business/New Delhi-Finance Minister Arun Jaitley on Wednesday said deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy immunity from tax and the land of law will apply on source of such money.

A day after the government announced the withdrawal of Rs 500 and Rs 1,000 banknotes in the country’s biggest crack down against black money, corruption and counterfeit currency, Jaitley said old higher-denomination currency notes have to be deposited in bank accounts to get newer or smaller denomination currencies.

“But it should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply (on source of fund),” he said. “If the money is legitimate which had been previously withdrawn from bank or earned legally and saved and had been disclosed, there is nothing to worry about,” Jaitley said.

But if it is illegal money, source will have to be disclosed and if it is a crime money, or bribe money, then it is trouble, he told. The Finance Minister further said that housewives and farmers with genuine savings need not worry about depositing cash in their bank accounts. “The small amounts that people will deposit like Rs 25,000, 30,000 or 50,000 lying in house for expenses, whatever money could be there for meeting normal family expenses they need not worry. They can go to banks,” he said.

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