Current Account is used by small and big companies for their receipts, payments, deposits transactions. After old currency has been withdrawn by Central Government of India, huge deposits are being made into current accounts. Source of these deposits have to be submitted by companies to Income Tax officials. There is no Current account cash deposit limit as of now. All current accounts that have cash deposits above Rs.12,50,000 (Twelve lakh Fifty thousand) after demonetization will eb checked by Income tax department.
It is a usual fact that there are more than one current account in name of a person or company. Recently withdrawal limit in Current account has been fixed. After demonetisation withdrawal amount from current accounts was just Rs.20000. Now it has been increased to Rs.50,000. Along with this a deposit limit on Current accounts has been set by Reserve bank of India. Central Board of Direct Taxes has ordered that all details regarding Current accounts that has deposits exceeding specified amount will be checked. Sources of these cash deposits will have to be furnished by current account holders, when Income Tax department raises questions.
Based on present instruction, all current account cash deposits which have amount exceeding Rs 12.5 lash will be checked between 9 November and 30 December. This is to find out any cash deposits being hidden in as black money in India. Permanent account number (PAN) is important as a proof when Aadhar number is quoted. All cash deposits exceeding Rs 50,000 in a current account can be deposited only using PAN number. This rule is same in case of Savings bank account customers, on a single day or over Rs 2.5 lakhs between November 9 and December 30.
Huge amounts have been deposited in Post offices, Co operative banks accounts. Government has already limited cash deposit in Co operative banks. Exchange limit of old notes has been slashed to just Rs.2000 from 18 November 2016.
Black money holders are trying to exchange their unaccounted money by hiring people to exchange old currency notes. In a way to lay hands over this issue, Government has introduced ink marks on right hand finger of every person who exchanges notes at banks.
Presently ink is marked only on people who do not have account with that bank branch. There is a news that from 24th November 2016, exchange of old notes will be discontinued.
For people who have genuine KYC (Know Your Customer) accounts there is nothing to worry. You can deposit old currency notes with you at your bank account till 30 December 2016.
Black money holding people are following all kinds of ways to exchange old notes for new Rs.2000 notes. Politicians, Buisness men who had deposited crores of money under binami names in Co-operative banks are in panic.
It’s because co-operative banks do not have permission to exchange old notes for new currency. Also all deposits are under scanner of Income tax department.
Any mismatch in deposits and tax return filed by a person will be cross checked. By this way income Tax of India is trying to get a hold on all incomes where evasion of tax happened till now.
Current account holders will not face any deposit limit in their accounts. All Current accounts that exceeds deposits of Rs.12,50,000 (12.50 Lakh) from 8 November to 30 November 2016 will scrutinized.