Govt urges people not to allow black money converters use their bank accounts

Speed Post News Network

New Delhi: The Government of India has requested the people not to fall into the trap of black money converters and be a partner in  their crime of converting black money into white by using their bank accounts. It  also urged the people, who are against the black  money, to give information of such illegal activities to the Income Tax (IT) department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized. “Black money is a crime against humanity. We urge every conscientious citizen to help the government in eradicating it,” said a PIB release.

It was announced by the government earlier that small deposits made in the banks by artisans, workers, housewives etc. would not be questioned by the Income Tax Department in view of the fact that present exemption limit for income tax is Rs. 2.5 lakh. But some reports have been received that some people are using other persons’ bank accounts to convert their black money into new denomination notes for which reward is also being given to the account holders who agree to allow their accounts to be used. This activity is reported in case of Jandhan accounts also.

The government has clarified that such tax evasion activities can be made subject to income tax and penalty if it is established  that the amount deposited in an account was not of the account holder but of somebody else. Also the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under Income Tax Act. However, the genuine persons having their own household savings in cash and depositing the same in the bank would not be questioned, the PIB release said.