President Pranab Mukherjee’s assent to the Taxation Laws (Second Amendment) Bill 2016, the Act which has provisions to levy total tax, penalty and surcharge of 50% on the amount deposited post demonetization, came into force on Saturday.
Following are the major highlights of the recent development:
- For those who fear being caught red-handed, there is a good news. The information will be kept confidential and will not be disclosed. Also, all those bearing black money can send their information on this e-mail ID.
- Revenue Secretary Hasmukh Adhia said, “The money generated from disclosure of unaccounted cash under the Act – which has higher taxes and stiffer penalty of up to 85% in respect of those found to be involved in conversion of black money into white – will be used for welfare scheme.”
- “We want people to join PM Garib Kalyan Yojana, as they contribute to welfare of the people through this scheme. The declarations under new black money disclosure scheme will be kept confidential. People can give information about conversion of black money into white to the government through email address created to get such info,” said the Revenue Secretary.
- All the amount collected in the form of taxes and penalty on unaccounted money can be deposited in the Pradhan Mantri Garib Kalyan Yojna (PMGKY) account from December 17 to March 31.
- Only depositing the unaccounted money into the banks wouldn’t convert black money into white. Tax must be assessed on the unaccounted money to convert black money into white.
- Non-disclosure of deposits made in banks after the demonetisation of Rs 500 and Rs 1000 notes will solicit stringent penalties and prosecution.
- Challan mechanism will be exercised from today onwards. Challans will have to be filled for depositing tax to avail the PMGKY scheme.
- Showing black money as income in the tax return, and not declaring the black money under the scheme would engender a total levy of 77.25 per cent in the form of taxes and penalty.
- Either through the scheme or through return, a further 10 per cent penalty on tax will be levied followed by prosecution.
- A person can avail the PMGKY scheme, only after payment of 50 per cent tax and setting aside the 25 per cent of the remaining undisclosed amount for 4 year.
As per reports, 2600 crore rupees of undisclosed income has been admitted by the taxpayers post – demonetization.
The Bill was passed by the Lok Sabha last month as a Money Bill. Later, the Bill was sent to the Rajya Sabha but in vain owing to the impasse between the government and the opposition.
The incumbent Government has offered another chance to all those holding Black money to come clean until March-end by paying a 50 percent tax on bank deposits of Black money.
