How much fine will Congress MP Dheeraj Sahu have to pay on the money recovered in the raid? Know what the provisions say
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Dhiraj Sahu IT Raid Case: Counting of the amount recovered in the Income Tax raid from the residences of Congress Rajya Sabha MP from Jharkhand, Dheeraj Prasad Sahu and his close associates is underway. According to media reports, Rs 300 crore has been counted so far. Pictures of bundles of notes in shelves have gone viral on all social media platforms. Now the question arises whether how much penalty will be imposed on the amount recovered in the IT raid. Will the Income Tax Department confiscate all the money? What are the provisions for this? Let us know-
What is the limit for keeping cash at home?
To stop black money, the government has made many rules related to cash transactions. The Income Tax Act does not make any provision to impose any limit on keeping cash at home. You can keep as much cash as you want at home. Keeping cash at home is not at all illegal, provided that all the cash should be part of your legal earnings. According to the provisions of the Income Tax Department in this case, if people having unaccounted money are not able to reveal its source after the raid, then both tax and fine will be imposed on them.
It is necessary to disclose the source of cash
If the Income Tax Department raids someone’s house or premises, then it is necessary to reveal the source of that cash. If this is not done, action is certain. This clearly means that no matter how much cash one keeps, it should not be black money. There should be a public answer about the source of that cash. Like- where has so much cash come from, what is its source, there should be a correct answer to this.
How much fine can be imposed?
Many people keep a lot of cash in their house. For some it is a hobby and for others it is a compulsion. Finding cash in a businessman’s house is not a big deal. He deposits the cash in the bank after a few days or as per his convenience, but by then a lot of cash is accumulated. In such a situation, the question arises that what will happen if a lot of cash is found in an IT raid in someone’s house and they are unable to tell the authorities about its legal source or cannot give any satisfactory answer? In such a case, the Income Tax Department team will confiscate the unrecognized cash and a penalty of up to 137 percent can be imposed.
Where does the seized cash go?
After the seizure of cash, it is assessed. After this, a detailed report or Panchnama of the seized amount is prepared and filed. State Bank of India officials are called to count the recovered amount. During this, after the counting of notes is over with the help of note counting machine, the seizure list is prepared in the presence of bank officials. After this, the seized cash amount is deposited in any government bank account.
Where is the seized money used?
The seized money cannot be used by the department, bank or government. The department prepares and issues a final attachment order. The case goes before the court to confirm the attachment. After this, the money remains in the bank until the case is over. After this, if the accused is convicted, the cash amount becomes the property of the Center and if the accused is acquitted by the court, the cash amount is returned.
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