Finance minster Arun Jaitley says the new denominations release is not a tax immunity scheme

NewDelhi,Nov9:FM Arun Jaitley declares that old Rs500/1000 denominations in a bank account will be subject to tax laws and that the exchange of money through banks was not a tax immunity or haven scheme.He reiterated that they will fight  and weed out corruption and black money.

Some showroom owners sold gold at the price of Rs.34000 per 10 grams till late night whereas the original price of gold hovers around the 30000 to 31000 range per 10 gms.

So some jewellery outlets and showroom owners made a killing yesterday night.  Almost 200kg gold has been sold by jewellers in Mumbai. The price is expected to fluctuate wildly over the course of today.

Sources from the IT department said that the department will keep a check on individuals who exchange an amount exceeding Rs.2 lakh. The objective is also to make Indians tax complaint, which will eventually lead to higher revenues for government.

The tax department has been asked to keep record of every individual along with his/her PAN card details and tally it with the tax filing.

Accordingly, the department will impose a penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.

As per the IT department sources, India has physical cash circulation of Rs 17 lakh crore, of which 88 per cent is in the form of Rs 500 and Rs 1,000 notes. Official data suggest that 40 per cent of black money is generated in real estate, while stock market and bullion transactions are other big sources.

In 2015, investigation agencies and the Reserve Bank of India had recovered 632,000 fake currency notes with a value of Rs 30.43 crore. In 2015, various intelligence agencies filed 788 cases of smuggling and circulation of fake currency notes, in which at least 816 people were accused.

Delhi and Uttar Pradesh together accounted for over 43 per cent of fake currency recovered