• A woman shows the new 2000 rupee currency note in Mumbai on Nov. 10, 2016.IANS
  • People wait outside banks to exchange currency notes in Mumbai on Nov. 10, 2016IANS

The Central government has assured small traders, households and self-employed that they need not be afraid of depositing old currency notes of Rs 500 and Rs 1,000 as the tax incidence will kick in only after a threshold. 

The assurances came in a series of tweets by economic affairs secretary Shaktikanta Das. 

Banks and post offices have started accepting old notes of Rs 500 and Rs 1,000 denominations and issuing the new series of Rs 500 notes in addition to the new denomination of Rs 2,000 from Thursday at ATMs and branches. 

The statement by Finance Minister Arun Jaitley that cash deposits above Rs 2.5 lakh would be taxable and a 200 percent penalty could be levied if there is an income mismatch triggered concerns in some quarters. 

He assured small businessmen, housewives, artisans and workers with savings that any cash deposit under the bracket of Rs. 2.5 lakh wouldn't be taxable or scrutinised.

The government said that those who buy gold with cash will have to give their pan card number to the jewellers. Action will be taken against those who do not comply.

"We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised."

Shaktikanta Das tweeted on Thursday to clarify people on concerns over cash deposits: