What will now happen if anyone makes Cash deposits more than Rs.2.5 lakhs in India?
People can face tax problem if their cash deposits exceeds 2.5 lakhs and also they will have to pay 200% penalty if their income mismatches with the data of declaration form.
Income tax department will follow all transactions that will be made from 10th November, 2016 to 30th December, 2016 and those data should match with the income returns files that made by the depositors. Any discrepancy may result in legal action against the depositors.
Jewelery houses have already got an instruction to collect pan number of buyers. If any jeweler forget to take pan number, he will be responsible to answer the government.
I finally found my way to wikipedia to check what a lakh actually is. So "2.5 lakh" is the same as a quarter million rupees, approx 5.25 bitcoins.
great & bold decision by Modi Govt.