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Deposits of old Rs 500, Rs 1000 notes not to enjoy tax immunity: Arun Jaitley

Jaitley praised the decision, saying the currency shake-up will weed out corruption, banking deposits will rise and have a positive impact on tax collection.
Arun Jaitley : Union Finance Minister

In the wake of high-value banknotes ban, the government on Wednesday stated that people can deposit as much cash as they want in banks to get new notes but shouldn’t take it as an amnesty scheme for undisclosed income.

“But it should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply (on source of fund),” he said.

Jaitley told public broadcaster Doordarshan, that the law will take its course if the deposited cash is found illegal but assured families and ordinary citizens that they didn’t have anything to worry about.

“Black money isn’t anyone’s basic right,” Jaitley said.

The Finance Minister’s statement came a day after the government put out of circulation notes of denomination Rs 1,000 and Rs 500 in a dramatic bid to stamp out corruption and drain illicit cash from the economy, according to a report in The Hindustan Times.

“Families shouldn’t worry. They should go and deposit their money in the bank. Maybe there will some issues in the first few weeks but everything will be smooth after that,” the Union Minister said.

Jaitley praised the decision, saying the currency shake-up will weed out corruption, banking deposits will rise and have a positive impact on tax collection.

“Every state will benefit from the state. When countries develop, cash shrinks and digital modes of transactions expand. It’s good that India is going in this direction,” he said.

Bharatiya Janata Party President Amit Shah describes the PM’s war on black money as being no less than a surgical strike. Amit Shah said: “I welcome the decision of the government to ban Rs. 500 and Rs. 1000 notes. On behalf of the Bharatiya Janata Party (BJP), I congratulate the Prime Minister for taking such a brave step. This fight against black money will continue. Decisions like forming SIT were earlier taken for the same.”

Earlier, Prime Minister Narendra Modi had appealed to people to disclose their unaccounted money till September 30 but had also indicated strong steps to unearth black money if people don’t comply.

Addressing the nation in “Mann ki baat”, Modi had said,“Don’t blame me for any harsh steps.” Jaitley assured the ordinary citizen and said the “bold” move will free India of corruption and boost the economy.

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