If filing an Income Tax Return, if someone does not provide information about their deposits in the banks, you may be subjected to a severe penalty. Expert says that the complete information about the deposit cash should be given at the time of filing a return, if taxpayers do not do so, then total tax is required to pay 85% tax and penalty.
Keep in mind while
keeping cash deposits in the account. Taxpayers in this regard say that the account should be cautious while making cash deposits. This does not mean that you will not be burdened with tax liability. Because filing income tax return requires taxpayers to show revenue and outward sources under section 115BBE. If taxpayers do not and do not show true sources then they have to pay double tax.
Understand simple words, if a taxpayers can not disclose the deposit amount in the bank, they have to pay 60% tax, 15% surcharge and 3% surcharge on it. In addition, Section 270AA may also attract 10% penalty. In total taxpayers have to pay 85% tax and penalty
