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Important information regarding cash deposit

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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