Cash deposits of over Rs 2.5 lakhs under scanner: CBDT

The Central Board of Direct Taxes (CBDT) on Monday announced that it will scrutinise cash deposits more than 2.5 lakhs in banks and firm action will be taken if it has not been made through proper channels.

Speaking to ANI here, CBDT Chairman Susheel Chandra said that a full report is being sought from banks on anyone who has deposited more than 2.5 lakhs, adding that strict action will be taken if it is not through proper channels.

"Any investment that is not comprised of clean money is liable to be under action by the Income Tax department. There is absolutely no tolerance for black money and we will carry out any investigation necessary," he said.

Reaction to the chaos across the nation with the common man still coming to terms with the Centre's tectonic announcement, the Tax Chief further said that honest tax payers have nothing to worry as it is only those dabbling in black money that need to be worried.

Meanwhile, the government has set up a special task force headed by Deputy Governor of RBI to expedite the process of re-calibrating the ATMs to make them fully functional, which will work with different banks in this direction.

Addressing the media in New Delhi about Prime Minister's last night meeting to review the demonetisation and its impact, Economic Affairs Secretary Shaktikanta Das said the ATM re-calibration has started and some of the ATMs will start dispensing higher denominations, including 2000 rupee notes, from today or tomorrow.

ATM limit has also been increased to 2,500 rupees, however it will be disbursed only by the re-calibrated ATMs.

Saying that there is no need for public to panic, Das assured that there is enough cash available in the system and situation will ease in coming days.

The toll tax will not be collected till the midnight of 18th November to ensure smooth traffic movement across all national highways.

On Sunday night, Prime Minister Narendra Modi held a meeting at his residence with senior ministers past Sunday to review demonetisation and its impact.

The meeting was attended by Home Minister Rajnath Singh, Finance Minister Arun Jaitley, Information & Broadcasting Minister Venkaiah Naidu, Power, Coal and Mines Minister Piyush Goyal and top officials of the Finance Ministry.

Last evening, after a review by the Finance Ministry, the limit of old and now defunct 500 and 1000 rupee notes that can be exchanged for freshly minted 2000 rupees and new 500 rupee notes was increased from 4000 rupees to 4500 rupees per day.

The time limit for certain categories of transactions using old series of 500 and 1000 rupee notes have been extended from midnight tonight to 24th November midnight. The categories include Government hospitals, railways and bus ticket counters, airports, petrol pumps, milk booths authorised by State governments, crematoria and burial grounds.

Cash withdrawal limit at ATMs was hiked to 2,500 rupees from 2,000 rupees a day. The weekly limit of 20,000 rupees for withdrawal from bank counters has been increased to 24,000 rupees.

The Ministry in a statement said that the maximum limit of 10,000 rupees per day on such withdrawals has been removed.

The Finance Ministry has also extended the last date for submission of the annual life certificate for pensioners from November to 15th January next year.