Only those with large amounts of undisclosed money will have to face the consequences under existing laws: Jaitley

New Delhi, Nov 10 (KNN) Finance Minister Arun Jaitley has assured that nobody would be harassed or questioned over small deposits.

While addressing the reporters at an Economic Editors' conference, he said, “It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws."

Deposits above Rs. 2.5 lakh will be taxed and could draw a 200 per cent penalty if found disproportionately higher than the account owner's income, the government has said.

Jaitley said people might face problems initially, but they would definitely benefit from the scrapping of large currency notes to end corruption, unaccounted wealth and terror financing.

Banks have been asked to keep details of people depositing large amounts in the time given till December.

People buying jewellery will also be tracked. Jewellers have been ordered to keep the details of such buyers and if they don't, they will be punished.

Prime Minister Narendra Modi's late Tuesday evening announced banning currency notes of Rs. 500 and Rs. 1,000 notes.

Over allegations that the sudden move will cause immense hardship to the poor, Jaitley said: "Temporary hardship is no excuse to perpetuate a system where black money prospers."