Modi holds cabinet meeting, discusses income tax penalty on large deposits

The Union Cabinet headed by Prime Minister Narendra Modi which met in New Delhi last evening, is believed to have discussed amending laws to levy close to 60 per cent Income Tax on unaccounted deposits in banks above a threshold post demonetisation of high-denomination currency notes, reports news agency PTI.

The move comes amid banks reporting over 21 thousand crore rupees being deposited in zero-balance Jan Dhan accounts in two weeks after the 500



and 1,000 rupee notes were banned which authorities apprehend may be the laundered black money. Sources said the government is keen to root out benami deposits, particularly in Jan Dhan accounts.

There was no official briefing on what transpired during the Cabinet meeting that was called at short notice as Parliament is in session. Traditionally, there could no disclosures outside on any policy decision taken during the sitting of Parliament.