Easy steps through which you can deposit your undeclared money in the bank

On November 8, 2016, Prime Minister Narendra Modi announced demonetizing Rs 500 and Rs 1,000 currency notes in order to rid India of the menace of black money.

But apart from black money holders, many others including housewives, daily wagers, shop owners and small time merchants are in a mess as many have stocked money at their homes. Do you have enough undeclared money at home? Don't worry about demonetization, your money will be safe.

Follow these easy steps to deposit at banks without worrying

If you don’t have an account

If you don't have a bank account, create a new account in any bank of your choice. For depositing up to Rs 2.50 lakh in the new account, you can write as "Earnings in cash for the financial year 2016-17 deposited due to demonetization". People who have already deposited some money in accounts can also try this method.

If below Rs 2.5 lakh, no need to panic

If your savings is  below Rs 2.5 lakh, you need not panic. During an announcement of  the demonetization, government has assured that people can deposit up to Rs 2.5 lakh in cash till 30th December. For money deposited up to Rs 2.5 lakh will have no questions asked. Income tax department won't ask the sources of this money.

Deposit in non-working women’s account

Another way to get your money clean is to deposit it in the account of a woman in the family who isn't working. For depositing cash in women's account, you need  Pay slip and PAN card photo copy. You can write "Savings from house hold expenses over the years deposited due to demonetization." These deposits aren't taxable.

Incomes that cannot be explained

Money that came from a source that cannot be explained, one needs to treat it as income of the current year. Firstly deposit the money in the bank by 30th of December. You should pay advance tax on it and include it in your total income for the assessment year 2017-18. You will have to pay about 33% tax. Then the question of penalty on declared income cannot arise.

Above Rs 2.5 Lakh

People with money who have sketchy documents to support need not worry. In case you have some amount of money above Rs 2.5 lakh in cash and have the source of money then don't panic. If the money is legal income tax department wouldn't ask you anything.
If the authorities do enquire, you will need to submit the relevant documents and certificates showing the source of that income.