No penalty for those depositing less than Rs 2.5 lakh: Arun Jaitley on black money clampdown

On 10 November, Union Finance Minister Arun Jaitley assured the nation that people depositing smaller amounts - less than Rs 2.5 lakh - would not attract harassments from the Income Tax (IT) officials.

Jaitley added that the banks across the country would remain open on weekends and extend their working hours to ensure that requisite replacement of currency is available to the people.

"It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws," Jaitley said at the two-day Economic Editor's Conference.

He said that while people may be currently unhappy with the government's decision, it would benefit them in the long run.

"This decision (scrapping of Rs 500/1000 notes) will impact the spending habits of people. We are trying to ensure at the earliest requisite replacement currency is available to people. There is no need to rush in initial days," Jaitley said.

Chief Economic Advisor Arvind Subramanian said the decision by the government would see reduction of wealth as it would lead to transfer of unaccounted wealth and help the government to spend in public sector projects.

"It should be seen as a transfer of this unaccounted wealth from private sector to Government and public sector, which will boost economy," Subramanian said.

--ANI