Unaccounted deposits disclosed to taxman face 50% tax, lock-in

Govt will introduce amendments to the I-T Act giving effect to this in the ongoing session of Parliament

Unaccounted deposits in scrapped currency notes up to December 30 if declared to taxmen will attract 50% tax, along with a lock-in of 4 years, sources said.

In case the disclosure is not made and the unaccounted money is detected by tax authorities, it will be charged with 60% tax and a longer lock-in period, the sources added.

The proposal was considered by the Cabinet meeting chaired by Prime Minister Narendra Modi last night.

"The government will introduce amendments to the Income Tax Act giving effect to this in the ongoing session of Parliament," a source said.

The government is keen to tax all unaccounted money deposited in bank accounts after it allowed the banned currency to be deposited in bank accounts during a 50-day window from November 10 to December 30, the sources added.