new Delhi. If you have a large amount in your account, or if you have jewelery or any other valuable items whose source you can not tell the Income Tax Department, then you can lose a large part of this entire wealth. Actually according to the rules of the Income Tax Department, if you have any money or valuables, and when asked by the Income Tax Department, you do not know how and where you got it from, then the Income Tax Department will consider the entire amount as your income. Taxes can impose heavy taxes, surcharges and penalties on it.
Know how high tax can be
According to the rules of the Income Tax Department, if a person gets money, gold, jewelery or other valuables and is unable to provide his papers or records or can not give a proper answer to this, then the entire amount will be given to him. The person’s income will be included, and it will be taxed at higher rates. According to the rules, 60% tax, 25% surcharge and 6% penalty are levied on such amount. That is, 83.25 per cent tax can be levied on such amount. There will be no benefit of any tax slab or any other exemption on this amount. The special thing is that you cannot take advantage of any deduction on this amount, nor can you get relief by showing any loss. The government started this scheme after demonetisation, during which people deposited large amounts of cash in their bank accounts, after which the government made a provision for heavy fines, so that people can get information about their cash before the income tax department. And to avoid penalty. At the same time, many people had transferred the money of others to their accounts, to prevent this, a provision for higher fines was made.
Why there was a provision for heavy penalty
In order to save tax, often people make large part of deals or purchases in cash, due to which the amount of deals or purchases in the system is less and it saves tax. At the same time, people try to hide the cash part by transferring money, benami property, deals in the name of others or in the accounts of others. In view of this trend, the Income Tax Department has made it clear that if you have any money or jewelery, then you will have to tell how you got it, whether it is yours or you are helping to hide someone else’s money. Or, you have taken cash without writing or papers to save some money. If you cannot tell the source of the amount or you can not answer the questions of the department correctly, then by considering this income as your income, you will be taxed more than 83% of the amount.