Important information regarding cash deposit
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
