Deposits in Jan Dhan Accounts Decline After Government’s Warning, Says Taxman
Rs 799 crore was deposited into Jan Dhan accounts between December 1 and December 2.
Inflows into Jan Dhan accounts have declined significantly after the government warned citizens not to allow their accounts to be misused to convert black money into white.
Around Rs 799 crore was deposited in these accounts between December 1 and December 2, the Central Board of Direct Taxes said in a statement issued on Wednesday.
In the first week after the government demonetised old high-value currency notes – between November 8 and November 15 – total deposits in Jan Dhan accounts stood at Rs 20,206 crore, the CBDT said. Subsequently, the amount of deposits in the second and third week dropped to Rs 11,347 crore and Rs 4,867 crore, respectively.
The average per account deposit in Jan Dhan accounts is Rs.13,113 for this entire period from November 8 to December 2, which is not alarming, given the need to bring all cash to banks.CBDT Statement
The Income Tax Department has identified local clusters and bank branches where the inflows of Jan Dhan deposits have been higher than usual, to investigate possible tax evasion, it said.
After setting a cash deposit limit of Rs 50,000 in Jan Dhan accounts, the government had on November 18 cautioned account holders that they will be prosecuted under the Income Tax Act for allowing misuse of their bank accounts through deposit of black money in Rs 500 and Rs 1,000 notes during the 50-day window till December 30.
The directive came against the backdrop of reports that some people were misusing other persons' bank accounts to convert their black money into new denomination notes.