Caution! Misusing Your Bank Account for Conversion of Black Money Could Lead you behind Bars
BENGALURU: Government of India gives a fair warning to all the jan Dhan account holders such as artisans and housewives that they will be prosecuted under the I-T Act if they support black money holders through their bank accounts during the 50-day window till December 30.
This order was passed because it was noticed that few people were using other persons' bank accounts to convert their black money into new denomination notes. According to the rule, Jan Dhan account holders can deposit up to 
50,000, whereas other account holders can deposit up to 2.5 lakh in bank accounts, which would not come under tax scrutiny as it is within the tax exemption limit.
However, for those people who are under the impression that they won’t get confiscated for doing such activity, the ministry asserted “such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act”
Previously government had reported black money credited in bank accounts during the 50-day period will be subject to tax, interest and 200 per cent penalty.
Government has requested people not involve into conversion of black money and get into trouble. In fact, it has asked people to oppose such kind of situation. Furthermore it adds “Unless all citizens of the country help the government in curbing black money, this mission of black money will not succeed,".
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