(ET)
In the days after demonetisation, thousands handled their hidden cash by dumping the currency in banks, filing a revised income-tax return, and forking out a little over 30% tax for the extra cash that was deposited.
This, they believed, was a neat way to take care of the cash and keep tax officers at bay. But things may turn out differently. On Friday, the government told all tax offices to accept only those revised tax returns where there is a “bona fide inadvertent error” or “error” or “a mistake” on part of the assessee. If inquiries indicate any dubious manipulation to legitimise undisclosed cash deposit, then an assessee should be taxed at a much higher rate under the anti-abuse provisions of the law.
