Banks are reopening today after a one day closure whereas this is reported that People are queuing up at nearest banks to exchange and deposit their Rs 500 and Rs 1000 notes due to the recent announcement of PM Modi on Rs500 and Rs1000 ban.
But before you rush to your nearest bank branch with your cash, here are some points below for you to check out what all major things you can do at the branches today:
Cash Deposit: You can deposit or exchanged your old Rs500 and Rs1000 notes into your bank accounts. Also, there will not be any limit on the value or quantity. However, if you are not aware with your Customer (KYC) norms compliant, the maximum value is Rs 50,000.
Possible Exchange: you can also exchange your old Rs500 and Rs1000 notes worth Rs 4,000 or below for any denomination having legal tender, i.e Rs 100, Rs 50 etc. But you’ll be asked to submit a requisition slip with your identity proof and along with your old notes to be exchanged.
Third-Party Accounts Deposits: if you are looking forward to deposit in any third party account, then, the equivalent value of the Rs500 and Rs1,000 tendered can be deposited to a third-party account, but, all you have to show a proof of authorization from the said account holder. In this case, you will be also asked to produce a valid identity proof.
Cash Withdrawal: you can also have privilege to withdraw cash up to Rs10,000 from your bank account, which is subject to an total limit of Rs20,000 in a week for the first fortnight, i.e. until the completion of trade hours on 24 November 2016.
According to the Pankaj Mathpal, a Mumbai-based certified financial planner said that the first rule is don’t panic.
“If people have small volume of cash which is in the form of Rs500 and Rs1,000 notes which people generally kept for their daily expenses, they should exchange that amount (up to the permissible limit) at their banks.”
If in case people having larger volume of cash savings in invalid currency, they should deposit that amount in the bank. The banks will accept any larger amount, but, if in case that amount is comes in black money or you are unable to show valid proof about where the money has come from, you should be prepared for consequences of tax evasion.
As Mathpal stated, “This means, not only will you pay the tax on that money, but also 200 percent. Banks have been informed to give the data of deposits to IT department”.
News Via: First Post