New Delhi: Government today cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30.

The directive comes against the backdrop of reports that some are using other persons’ bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse.

The government had earlier said deposits up to Rs 2.50 lakh in bank accounts would not come under tax scrutiny as it is within the tax exemption limit. In the case of Jan Dhan account, the holder can deposit up to Rs 50,000.

However, the income tax department has noted that people are under impression that no action will be taken for deposits up to Rs 2.50 lakh during November 9-December 30.

The ministry said “such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act”.

The government has earlier said black money deposited in bank accounts during the 50-day period will be subject to tax, interest and 200 per cent penalty.

It asked people not to be lured into conversion of black money and become a partner in the crime of converting black money into white through this method.

“Unless all citizens of the country help the government in curbing black money, this mission of black money will not succeed,” the official statement said.

It also asked people to provide information of such illegal activities to the I-T department so that immediate action can be taken and such illegal transfer of cash can be stopped and seized.

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

Following the demonetisation announcement of November 8, people have been queueing up in front of banks to convert and deposit the now-defunct 500 and 1,000 rupee notes.

The tax department has already made quoting of PAN mandatory if cash deposits during the 50-day period aggregate Rs 2.5 lakh or more in bank accounts.

(Agencies)

Ahmedabad: As the government announced scrapping high denomination notes in move to root out black money, a case of bribery has to the light from Gujarat.

The Anti-Corruption Bureau arrested two officials of the trust port officials for accepting a bribe of Rs 2.9 lakh, but what stunned the officials was that the whole amount was in Rs 2000 note — newly issued on November 11.

The arrested officials, Superintending Engineer P Srivivasu and Sub-Divisional officer K Komtekar of the Kandla Port Trust, sought Rs 4.4 lakh in bribe to clear the bills of a private electrical firm.

A middleman of the two officials accepted a part of the bribe, which was a sum of Rs 2.5 lakh. But he was arrested after a trap was laid by the agency officials.

(Agencies)

New Delhi: Government today lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow.

Among other measures, it has allowed up to Rs 2.5 lakh cash withdrawal from bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.

“To enable larger number of people to get benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,” Economic Affairs Secretary Shaktikanta Das told reporters.

The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available “once per person till December 30”.

“This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available,” he said.

The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.

Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes.

Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes.

“This has been considered by the government and decided that for wedding ceremonies, up to Rs 2.5 lakh will be allowed to be withdrawn from account if father or mother or the bride and groom,” Das said.

He said the account has to be KYC compliant and self declaration has to be given to the bank. The Rs 2.5 lakh can be withdrawn from only one account.

(Agencies)

Rohtak: A 56-year-old bank manager in Haryana died of a massive heart attack after spending three frantic days serving hundreds of customers following the government’s shock withdrawal of high-value currency.

Police say Rajesh Kumar, the manager of Rohtak’s Cooperative Bank, was found dead in his chamber on Wednesday morning after spending three nights in the office because of the increased work load.

Banks across India have struggled since Rs 500 and Rs 1000 notes were recalled last week as millions have poured in to exchange or deposit old currency. Banks have been asked to open early or close late to accommodate the large crowds, adding to the woes of bank staff.

“Due to increased work-load, Kumar had been sleeping in his office from the past three days. His family said he was on medications for heart disease,” Shivaji colony police station in-charge Neeraj Kumar said. Work at the bank has been suspended.

When a security guard reached the bank on Wednesday morning, he knocked at the manager’s office door but got no reply. He alerted other employees who called in the police, who broke the door to find him dead.

The police said Kumar belonged to Gurgaon and is survived by his wife and two children.

(Agencies)

Mumbai: Following the Centre’s ban on Zakir Naik’s NGO, the Islamic Research Foundation, for five years, the counsel of the controversial Islamist preacher, has asserted that it is an ‘illegal and unjustified’ ban and added that they will move the tribunal against the order. Naik’s lawyer, Mubin Solkar, told media, “So far, we have not been served with any such kind of notification under Section 3 of the UAPA. We are clear that this ban is not justified at all and is an illegal ban, because, the provision of the UAPA has been wrongly invoked in this case. According to us, it is a clear misuse of the provisions of UAPA.”

He further said that in order to declare an organisation as unlawful, it has to reveal, highlight and promote the offence under Section 153A, that is promoting enmity on grounds of religion which the Islamic Research Foundation has not done.

“The IRF since its inception has promoted peace and harmony, charitable, sociable and humanitarian activities. This ban is wholly unjustified. So, even if this notification is issued, it does not normally take effect unless it is confirmed by the tribunal,” he added.

A confident Solkar said he is sure that the tribunal would cancel the ban. On Tuesday, the Centre banned the IRF for five years and asked law enforcement agencies to maintain a strict surveillance on activities of all establishments of the organisation. The decision was taken by the Cabinet Committee on Security after Naik was found to deliver provocative speeches.

The development comes after the Ministry of Home Affairs issued a show cause notice to Naik’s NGO thereby initiating the process for cancellation of its FCRA licence.

MHA sources stated that the process for putting Zakir Naik’s educational trust in prior permission category has also been initiated. The Centre had time and again asserted that Naik’s IRF is maligning India and, therefore, on several occasions insisted that there is a need for it to be banned.

Naik came under the scanner after the Bangladeshi newspaper ‘Daily Star’ revealed that one of the perpetrators of the July 1 terror attack in Dhaka, Rohan Imtiaz, was inspired by Naik. He is banned in both the United Kingdom and Canada for his alleged hate speeches aimed against other religions.

He is also among the 16 banned Islamic scholars in Malaysia and is accused of radicalizing and attracting youth for terror acts and has come under the scanner of the security agencies.

(ANI)

New Delhi: External Affairs Minister Sushma Swaraj was admitted to the AIIMS due to kidney failure and underwent tests for a transplant, but the doctors said the procedure may take some time as a donor was yet to be found.

Swaraj took to twitter to inform about her health condition.

“Friends: This is to update you on my health.

“I am in AIIMS because of kidney failure. Presently, I am on dialysis. I am undergoing tests for a kidney transplant. Lord Krishna will bless,” she tweeted this morning.

Doctors at the hospital said since a suitable donor was yet to be found, the transplant would not be conducted immediately.

“Since a donor from her immediate family is not available right now, the kidney transplant might take some more time. The search for a suitable donor is on. Meanwhile, she is on maintenance dialysis (as and when required),” said sources.

Swaraj has been allowed to go home today but she will be back at AIIMS tomorrow, the sources said.

64-year-old Swaraj, who has been in and out of the hospital for last few months, was admitted to AIIMS on November 7. A team of doctors comprising Dr Sandip Mahajan, professor (Nephrology), Nikhil Tandon, HOD (Endocrinology), Dr Randeep Guleria, HOD (Pulmonary Medicine) and Balram Airan, Chief of the Cardio Thoracic Centre are treating her.

After Swaraj tweeted about her health, there was a flood of get well soon wishes from politicians as also people from a cross section of society. Some even offered to donate a kidney to her.

“Respected @SushmaSwaraj ma’am. My blood group is B Positive. I will be happy to donate my kidney to you, if needed. God bless,” tweeted Rahul Verma.

Many saw her announcement as setting new standards of transparency as politicians usually are not forthcoming about divulging details of their health condition.

“@SushmaSwaraj sets yet another benchmark. In terms of being honest about health issues. This is truly a new India as it should be,” tweeted marketing expert Suhel Seth.

Politicians cutting across party lines including Congress leader Ambika Soni, National Conference’s Omar Abdullah, Delhi Chief Minister Arvind Kejriwal, Union Ministers Mukhtar Abbas Naqvi and Jayant Sinha and Rajasthan Chief Minister Vasundhara Raje wished Swaraj speedy recovery.

“Very sorry to hear about your health problems @SushmaSwaraj ji. My father went through the same so I know how you & the family must feel,” Abdullah tweeted.

Earlier she was admitted to AIIMS in April for treatment of pneumonia and other health issues.

(IANS)