The government on Monday allowed use of junked Rs 500 and Rs 1,000 notes till December 30 for paying tax on disclosures made under the tax evasion amnesty scheme.

After the shock demonetisation of high value notes on November 8, the government allowed the banned currency to be deposited in bank accounts.

Those with unaccounted cash were offered a chance to come clean by paying 50 per cent of it as tax, penalty and surcharge, while parking an additional 25 per cent in a non-interest-bearing deposit for four years.

'An opportunity has been given to the public to make the payments towards tax, penalty, cess/surcharge and deposit under the Pradhan Mantri Garib Kalyan Yojana 2016 with the old bank notes of Rs 500 and Rs 1,000 denomination up to December 30, 2016,' an official statement said.

Explaining the provision, an official said a holder of unaccounted cash in Rs 500/1,000 notes can now deposit half of it in any of the 29 scheduled bank that are entitled to accept income tax on behalf of the government.

A quarter of the amount can be deposited in cash in the non-interest rate bearing PMGK Deposit Scheme 2016. The remaining 25 per cent can then be deposited in individual bank account.

After December 30, tax as well as the deposit will have to be made through cheque or RTGS transfer.

The government has allowed holders of the scrapped notes to deposit them in their bank accounts till December 30. No scheduled bank will accept them after that date. -- PTI