Increased Tax Rate of 60% u/s 115BBE not applicable to Cash Deposits during 2016 Demonetization, prospectively from April 2017: ITAT

The Taxscan article clarifies that the increased tax rate introduced during demonetization does not apply to cash deposits made during the demonetization period, effective prospectively from April. The Income Tax Appellate Tribunal (ITAT) ruled that the higher tax rate was not applicable to deposits made during November-December 2016 as the change in tax rates is prospective. The ruling implies that taxpayers who deposited cash during demonetization are not subject to the higher tax rates, unless the deposit took place after the law was amended.