Telangana News

The Indian government has strictly warned to levy 85% tax on the unaccounted deposits if caught and so asked to pay only 50% tax on all such deposits, before the government’s interference. 

Finance Minister Arun Jaitley introduced a bill to amend the Income Tax law, which also provides for black money declarants a mandatorily depositing of 25% of the amount disclosed in anti-poverty scheme without interest and a 4-year lock-in period.

People who declare their wealth in the banned currency, under the Pradhan Mantri Garib Kalyan Yojana 2016, will have to pay a tax at the rate of 30% of the undisclosed income. Adding to it, a 10% penalty will be levied on the undisclosed income and surcharge called PMGK Cess at the rate of 33% of tax.

Not stopping there, the declarants should also deposit 25% of the undisclosed income in a scheme to be notified by the government in consultation with the RBI.

The money from the scheme would be used for projects in irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood, so that there is justice and equality, said the Statement of Objects and Reasons of the Bill.

On the other side, those who chose to stay away from disclosing their black money, the existing provisions of the Income Tax law will be amended to provide for a flat 60% tax and a surcharge of 25% of tax (15%), which will amount a levy of 75%.

Adding to it, the assessing officer can even charge a 10% penalty in addition to the 75% tax.