Agency
NEW DELHI: Offering one last chance to black money holders, the government on Friday aid they have time until March-end to come clean by paying 50 per cent tax on bank deposits of junk currencies made post demonetisation.
While announcing the new black money disclosure scheme, Pradhan Mantri Garib Kalyan Yojana, Revenue Secretary Hasmukh Adhia said that stringent penalties have been prescribed in the new provisions. However, he added that the declarations made under the new scheme will be kept secret.
“The scheme will start from December 17 and will run till March 31,” said Adhia, adding that government wants people to contribute to the welfare of poor via PM Garib Kalyan Yojana.
The scheme allows people to deposit money in their accounts by paying 50 per cent of the total amount — 30 per cent as tax, 10 per cent as penalty and 33 per cent of the taxed amount, that is 10 per cent, as Garib Kalyan Cess. This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood.
The scheme is a part of the Taxation Laws (Second Amendment) Bill, 2016, passed by the Parliament on November 29 to amend the income tax laws to provide for stiffer penal tax in the wake of the November 8 demonetisation.
Not declaring the black money under the scheme now but showing it as income in the tax return form would lead to a total levy of 77.25 per cent in taxes and penalty. In case the disclosure is not made either using the scheme or in return, a further 10 per cent penalty on tax will be levied followed by prosecution, he said.
There will be no immunity in criminal laws and the information will not be shared for any tax purpose. “We do not want tax officials to bother any one. We have information and I-T will use it. Financial Intelligence Unit is providing us with all tax related information,” said Adhia warning that those who have deposited money in bank accounts should not think that they have escaped by depositing Rs 2 lakh in 10 different banks. Adhia also said that the all agencies are getting daily information on deposits and payment of loans and added that people can inform government about those converting black money at [email protected].
He also added that farmers having income more than 2.5 lakh will have to give PAN card.
As per the scheme, taxes will have to be paid first and then the scheme can be availed on production of tax receipt, unlike the recent Income Disclosure Scheme and other such plans wherein disclosures were made first and taxes were recovered later. Also, as the disclosures will be kept confidential, the holder of unaccounted cash need not disclose it in Income Tax Returns forms.
CBDT Chairman Sushil Chandra also informed about the cash seizures and various actions being taken by the department.
