Watch out for the 200% penalty: Deposit only what you can account for

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If you have hoards of cash and wish to deposit it into the bank, do so if you can only account for that income as the government has said there will be a massive penalty incase of mismatch between the two.

 

If tax men find out that money deposited is not matching with the income declared,it would be treated as a case of tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per the section 270(A) of the income tax act. Hence,  authorities might take away 90% of your money if there is an income mismatch.

 

Imprisonment?
The tax defaulter could also attract prosecution under Section 276C of the Act, with imprisonment from three months to seven years with fine, said experts.
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