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Published On: Fri, Dec 16th, 2016

New scheme to disclose black money , attracts 50% tax and penalty

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555398-disclosureNEW DELHI : The Taxation Laws (Second Amendment) Act 2016 has come into force which has provisions of levy of a total tax, penalty and surcharge of 50 per cent on the amount deposited post demonetisation. While higher taxes and stiffer penalty of up to 85 per cent in respect of those found to be involved in conversion of black money into white.
The money collected from taxes and penalty on undisclosed incomes will be deposited in the Pradhan Mantri Garib Kalyan Yojna, which in a part of the Act. }
The scheme will commence from tomorrow and remain open for declarations up to 31st of March next year. Briefing reporters in New Delhi today, Revenue Secretary Hasmukh Adhia said, the money generated from disclosure of unaccounted cash will be used for welfare scheme.
Mr. Adhia said, declarations made under the scheme will be kept confidential and appealed people who are having undisclosed income to come forward. He also said, people can also give information about black money on the e mail ID-
The government today gave three more months to people to come clean on their untaxed wealth under a scheme announced last month and get rid of the “black money” stain.
Those who fail to declare their un taxed income under the scheme have to pay 77 to 100 per cent in tax and fines. According to Finance Ministry after the ban on 500 and 1,000 rupee notes on November 8, a move aimed at choking tax evaders, around Rs. 2,600 crore in undisclosed income has been admitted by taxpayers.
The Garib Kalyan scheme, Mr Adhia said, is “not amnesty” but the last window to “move out of the black money system”.
The government has also urged people to email any tip-off they have about black money. “We have set up a specific address for direct information on black money, which is

Those who declare their wealth under this scheme will also have to park a quarter of the sum in a non-interest deposit for four years.
Those with illegal wealth have a common modus operandi, said Mr Adhia, which includes deposits in multiple accounts, misusing Jan Dhan zero-deposit accounts for the poor and setting up fake companies.
“Everyone should remember that black deposits are being watched,” Mr Adhia said, commenting that the idea is not to create an Inspector Raj but people “should realize that the department has information on people’s deposits.”
Central Board of Direct Taxes Chairman Sushil Chandra cautioned that tax authorities are checking all deposits in banks since November 8 and having these scrutinised by expert data analysts.
“All the money deposited in the bank is not white, until tax is paid as per law. So don’t think that just because your black money has been deposited, it is white. There will be an investigation,” said the top official.
Since the notes ban, around 316 crores has been seized in multiple raids by taxmen and around 80 crores is in brand new currency. Jewellery worth 76 crores has also been seized.
Speaking to the media he said the declarations made under this new black money disclosure scheme will be kept confidential. Adhia reiterated that the information would strictly stay with the department. “Don’t want inspector-raj to affect people, the people should understand that all information about their deposits is with the department.”

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