Demonetisation

I-T dept to go easy on senior citizens with bank deposits up to Rs 5 lakh

senior citizens

New Delhi, February 22: Easing norms for senior citizens tax department on Wednesday said that it will not carry out any further verification for cash deposits up to Rs 5 lakh made by people above 70 years of age post demonetisation, while limit for other individuals remains Rs 2.5 lakh.

Reiterating CBDT’s yesterday’s statement, a senior finance ministry official said, “There is absolutely no cause for panic. We are not going after everyone who deposited their holding of the demonetised currency in bank accounts between November 8 and December 30, 2016. Very clear thresholds have been set for tax department to take up deposits for verification. I repeat, it is for verification and not scrutiny or assessment.”

The official reiterated, the earlier directive that verifications would be conducted online and verification would be made on I-T department website.

“The threshold for further verification of cash deposits is Rs 2.5 lakh for persons upto 70 years age, and Rs 5 lakh for taxpayers above 70 years where the source of such deposits is household savings and savings from past income and the individual does not have any business income,” he said.

He also said that further non-statutory clarifications will also be sought without issuing a show-cause or any notice. “No inquiry or third party verification will be initiated outside the e-verification,” he added.

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