People indulging in Money Laundering Activities and Converting their Black money into White will not be Spared, says Shaktikanta Das

New Delhi, December 2, 2016: The Finance Ministry on Friday warned the black money hoarders that those involved in the conversion of black money to White will not be spared.

The government on November 8 had announced the demonetization of Rs. 500 and Rs. 1000 currency notes to root out corruption and terrorism from the country. But, black money hoarders were converting their unaccounted money into white by using the poor people.

Prime Minister Narendra Modi warned people that they should not convert their ill-gotten by using the poor people as it would put them into trouble.

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Modi said in his radio talk "Mann ki Baat", "Some people think they can convert their black money into white. And they are looking at unlawful ways. It's unfortunate they have chosen to use poor people for this."

"I want to say that is us up to them to abide by the law or break it, it is up to them if they want to correct themselves. The law will deal with them. But please don't play with lives of poor," Prime Minister Modi added.

The government urged the citizens of India to help out the government in rooting out black money.

"Those indulging in or colluding with money laundering or converting black money into white will not be spared," Economic Affairs Secretary Shaktikanta Das tweeted.

"Trails being pursued by agencies. Coordinated action underway. Result already visible. Will be more visible in coming days," he added.

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According to the Taxation Laws (Second Amendment) 2016, those caught illegally converting money will have to cough up 60 percent tax plus penalties, which will come to 85 percent. The Lok Sabha on Tuesday passed this Bill that seeks to tax money deposited in bank accounts post demonetisation.

Finance Minister Arun Jaitley said that the bill was brought after it came to know that people were exchanging the demonetised Rs. 500 and Rs. 1000 currency notes illegally, mentioned PTI.

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The government even requested people to provide information of such illegal activities to the IT department so that strict action could be taken against them and help in curbing out black money from the country.

The Ministry said in a statement, "Income Tax and penalty would be subjected if it is found that the amount deposited in the account was not of the account holder but of somebody else. Also, the person can be prosecuted for abetment under the Income Tax Act."

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"Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it," it added.

The tax department has enclosed that cash deposits of more than 2.5 lakh in bank accounts would have to provide PAN card.

–prepared by Zoya Arshi from NewsGram Twitter: zoyaarshi96