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Tax laws to hit those with large amounts of undisclosed cash

Finance minister Arun Jaitley on Thursday reiterated the government’s assurance that people need not fear harassment from the income tax department if they have deposited small amounts in banks following the demonetisation of the Rs 500 and Rs 1,000 currency notes. The minister also spoke on a number of other issues at the Economic Editors’ Conference in New Delhi. Edited excerpts:

Small depositors need not worry about demonetisation: Small deposits which are made, nobody will face any questions or harassment of any kind. So people who have small amounts of cash, there has been an Indian tradition to keep some cash always at home for exigencies and emergencies, which is required, they can exchange that; they can deposit that in their accounts. The revenue departments are not going to take notice of small depositors. In any case, deposits which are within  ..

Worry for some: It's only those who have large amounts of undisclosed monies who will have to face the consequences under the tax laws itself and we already have the tax laws in place. Nothing new is intended. Under our existing laws, whatever accountability they have, they will have to face that accountability.

Availability of new currency: We are trying to ensure that at the earliest the requisite replacement currency is available with the people. We do believe that there is no reason to rush in the initial days because people have time till December 30. More the deposits are spread out, the more will be the convenience to the people.

Short-term impact of demonetisation: There will be, for a few days, till there is an inadequacy of currency, some impact on local purchases. But in the medium and the long run, the overall impact of the recent steps we have taken on the Indian economy will be positive

Inconvenience due to demonetisation: Temporary hardship is no reason to perpetuate a system where black money prevails. We should be ready for temporary hardship for a cleaner system…There is no fundamental right of any section to deal in black money.

11TH NOVEMBER, 2016 THE ECONOMIC TIMES, NEW DELHI

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