Note de­posits over `2.5L will be un­der I-T Teen hit by train while tak­ing selfie on plat­form at Mira Road

PUN­ISH­MENT FOR EVA­SION Tax plus 200% penalty for in­come mis­match, says Modi govern­ment

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dents let­ters@hin­dus­tan­ Ram Par­mar ht­metro@hin­dus­tan­ The vic­tim Mo­hammed Shab­bir Ahmed Khan.

Cash de­posits above Rs2.5 lakh could at­tract tax be­sides a 200% penalty in case of in­come mis­match, the govern­ment said on Wed­nes­day, un­veil­ing more mea­sures to com­bat the “dis­ease” of cor­rup­tion and drain out il­licit cash from the econ­omy.

The an­nounce­ment came a day af­ter PM Naren­dra Modi cre­ated a flut­ter by abol­ish­ing 1,000-and 500-ru­pee ban­knotes in a move to flush out money hid­den from the tax man. New 500-and 2,000-ru­pee bills will re­place about 86% of all cur­rency in cir­cu­la­tion by value.

Fi­nance min­is­ter Arun Jait­ley said on Wed­nes­day peo­ple can de­posit as much cash as they want in banks to get new notes but added the money will be open to tax scru­tiny. Hours later, rev­enue sec­re­tary Has­mukh Ad­hia spelt out how the govern­ment pro­posed to go about the busi­ness. “We would be get­ting re­ports of all cash de­posited dur­ing the pe­riod of Novem­ber 10 to De­cem­ber 30 above a thresh­old of Rs2.5 lacs in ev­ery ac­count. The depart­ment would do match­ing of this with in­come re­turns filled by the de­pos­i­tors. And suit­able ac­tion may fol­low,” he told re­porters.

Amounts that don’t match in­come sources will at­tract 30% tax and a penalty of 200% on the tax­able amount, he told HT, adding pros­e­cu­tion will be de­cided on a case-to-case ba­sis. Suc­ces­sive govern­ments have strug­gled with un­der-re­port­ing of taxes, seen as a hur­dlein­ex­pand­ingstaterev­enues, aswellaswith­growingundis­closed in­comes to avoid tax­a­tion.

Jait­ley said the ban on high­value ban­knotes will change this.“The cred­i­bil­ity of the In­dian econ­omy will in­crease,” he told jour­nal­ists, adding the move will boost tax rev­enue in a coun­try where just 3% of the pop­u­la­tion pays tax. Modi’s move led to im­me­di­ate up­heaval, with mil­lions of peo­ple hold­ing cash sav­ings hurled into un­cer­tainty and fear, es­pe­cially the poor who do not have bank ac­counts and keep their money in cash. The Ban­dra-Worli sea link was jammed af­ter toll booth op­er­a­tors re­fused to ac­cept Rs500 and Rs1,000 notes.

A 14-year-old boy was killed while pos­ing for a selfie with a pass­ing train at Mira Road sta­tion. The po­lice said the boy was tak­ing a selfie us­ing a phone gifted to him by his par­ents for his birth­day. The boy was in the com­pany of this friend, who chose not to re­port the in­ci­dent to the po­lice be­cause they had lied to their par­ents about their lo­ca­tion, the po­lice said.

On Novem­ber 4, Mo­hammed Shab­bir Ahmed Khan’s par­ents gifted him a mo­bile phone. The po­lice said Mo­hammed called his friend Faisal and they de­cided to go to Jog­gers’ Park in Mira Road to take self­ies. On the way, how­ever, Mo­hammed’s cy­cle de­vel­oped a punc­ture so they de­cided to go the train sta­tion in­stead, but didn’t in­form their par­ents.

The po­lice said while Mo­hammed was try­ing to take a selfie on one of the sta­tion’s plat­forms, a train knocked him down. The train’s loco pi­lot in­formed the Mira Road GRP about the in­ci­dent, who took Mo­hammed’s body to Tem­bha Civic Hos­pi­tal for a post-mortem. As the body was un­recog­nis­able, the po­lice con­cluded it was a 35-year-old man, the po­lice said. Mean­while, Mo­hammed’s par­ents reg­is­tered a kid­nap­ping case at Naya Na­gar po­lice sta­tion af­ter their son did not come home for two days.

“The Tem­bha Civic hos­pi­tal called us to tell us the body of a 35-year-old man had been found at Mira Road sta­tion. We told Mo­hammed’s par­ents this, but since he was 14, they did not come to the morgue to iden­tify the body,” said po­lice in­spec­tor R Jad­hav, Naya Na­gar po­lice sta­tion.

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