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    Important information regarding cash deposit

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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

     

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