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As per the announcement of Govt. Cash above Rs. 2.5 lakh deposited in banks following the scrapping of Rs. 500 and Rs. 1,000 notes could attract a tax and a 200 per cent penalty in case it is disproportionate to the account owner's income.
According to tax slab of the year 2016 the 200% penalty may be charged on how much amount you will deposit in bank / post office in below mention way.
| Income Tax Slab of year (2015-16) | Income Tax Rate |
Income up to Rs. 2,50,000 | Nil |
Income between Rs. 2,50,001 - Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Here are the estimate calculations on depositing Cash in Banks as per Government.
1) Up to Rs.2.5 Lakh Deposit :
The amount will be tax free
2) Rs. 5 Lakh Deposit :
First 2.5 lakh - exempted
10% of remain 2.5 lakh = 25,000
Total tax = 25,000
200% penalty on tax = Rs.50, 000
Total tax + penalty = 75,000
3) Rs.10 Lakh Deposit
First 2.5 lakh - exempted
10% of 2.5 lakh = 25,000
20% of 5 lakh = 1, 00,
Total tax = 1, 25,000
200% penalty on tax = 2, 50,000
Total tax + penalty = 3, 75,000
4) Rs. 20 Lakh Deposit
First 2.5 lakh - exempted
10% of 2.5 lakh = 25,000
20% of 5 lakh = 1, 00,000
30% of 10 lakh = 3, 00,000
Total tax = 4, 25,000
200% penalty on tax = 8, 50,000
Total tax + penalty = 12, 75,000
5) Rs. 30 Lakh Deposit
First 2.5 lakh - exempted
10% of 2.5 lakh = 25,000
20% of 5 lakh = 1,00,000
30% of 20 lakh = 6,00,000
Total tax = 7,25,000
200% penalty on tax = 14,50,000
Total tax + penalty = 21,75,000
6) Rs.50 Lakh Deposit
First 2.5 lakh - exempted
10% of 2.5 lakh = 25,000
20% of 5 lakh = 1,00,000
30% of 40 lakh = 12,00,000
Total tax = 13,25,000
200% penalty on tax = 26,50,000
Total tax + penalty = 39,75,000