Unaccounted For Deposits Disclosed Face 4 Year Lock-In, 50% Tax: Report

New Delhi: Unaccounted for deposits in scrapped currency notes up to December 30 if declared to the taxman will attract a 50 per cent tax, along with a lock-in of four years, sources said.

In case the disclosure is not made and the unaccounted money is detected by tax authorities, it will be charged with a 60 per cent tax and a longer lock-in period, the sources added.

The proposal was considered by the Cabinet meeting chaired by Prime Minister Narendra Modi on Thursday night.

"The government will introduce amendments to the Income Tax Act giving effect to this in the ongoing session of Parliament," a source said.

The government is keen to tax all unaccounted money deposited in bank accounts after it allowed the banned currency to be deposited in bank accounts during a 50-day window from November 10 to December 30, the sources added.