As many as 60 lakh individuals and firms have made large deposits totalling an astonishing Rs 7 lakh crore in old notes, top government officials said today while warning that every penny of tax will be extracted as the black money does not become white by merely putting it in banks.

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They said the government will not hound any genuine depositor but at the same time will not hesitate in tracking all such deposits and litigating any tax evasion by a black money holder trying to convert illegal wealth.

Post demonetisation, unaccounted wealth holders have an option to avail of a tax evasion amnesty scheme Pradhan Mantri Garib Kalyan Yojana (PMGKY) and pay their dues, failing which the government's long arms will surely catch them, they said.

"People are thinking that money has come into the banking system and it has all become white. This is not so. We have been getting daily information of all the deposits above Rs 2 lakh, Rs 5 lakh and the number and amount deposited. We have been collating this information with past information about the each person," a top government official told PTI.

"So, there is a huge scope for taxing now which has arisen and we do hope that people will understand that simply because they have put in bank it has become white that is not the case. We do hope that people themselves will come forward to participate in the scheme. But if they don't, they are not going to be happy," the official further said.

The tax department is armed with systems to track those with multiple banks accounts as well as those who are depositing in accounts of others and tax department will not leave anyone who is trying to evade taxes, he added.

"Even if you take deposits of more than Rs 2 lakh, we have information about more then 60 lakh individuals, companies and institutions who have deposited more than Rs 7 lakh crore of money. That's an astonishing number. We will be looking at it. For individuals the deposit figure would be Rs 3-4 lakh crore.

"We do expect a lot of revenue buoyancy because of this either in this year or in subsequent years but nobody will go scot-free," the official said.

Following the demonetisation of 500 and 1,000 rupee notes on November 8, the government has come out with PMGKY under which people can disclose unaccounted cash and come clean by paying 50 per cent tax. Besides the scheme provides for a mandatory deposit of 25 per cent of such income in the zero-interest bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years.

PMGKY commenced on December 17 and shall remain open for declarations and deposits up to March 31, 2017.