Date – 28th November, 2016,
Time – 4:00 pm
Bill Passed – Rajya Sabha
Monday (New Delhi)- In what termed to be as one of the most important steps taken by the government, it has actually given the way to the black money holders. Yes, continuing on the series of steps taken almost on daily basis since the announcement by the Prime Minister, there has been a fresh guideline which is issued by P.M.
Read : How to fix chrome error
What is the name of the scheme under which notes banned of 500 and 1000 are done?
Pradhan Mantri Grab Kalyan Yojana 2016
Will I be asked the source of fund during declaration?
Hasmukh Adhia who is the revenue secretary has made it clear, that during the disclosures of unaccounted wealth, there will be no queries to be asked from people with respect to the source of fund.
This has been a part of the bill which has been announced on 28th November, 2016, as it has been passed in Rajya Sabha. By the Finance Minister, Arun Jaitely
So what are the guidelines?
There will be a total tax, penalty and surcharge of 50 per cent on the whole amount which is deposited on the bank. Yes, the amount will be taken into account after the notes banned of 500 and 1000 were announced. Well, for those who haven’t still disclosed their amount, the government has issued a penalty which will be around 85%, in the event when they are caught.
Well, on top of that, another additional 10% penalty rests on the discretion of the assessing officer who may either levy it or not.
Well, this is certainly an additional penalty beyond the 50% penalty on the tax (which has been uptill now)
It is also made compulsory for the black money holders to deposit 25% of the total amount which has been disclosed as a way of anti-poverty scheme without interest with a 4 year lock-in period.
The people who are going to declare their hidden income after the notes banned of 500 and 1000 will have to pay a penalty in the form of 30% tax on the total income (which has been undisclosed). Along with the same, there will also be a 10% penalty on the undisclosed income along with the surcharge at the rate of 33 percent of tax. Here I would like to help you with an example like 33% will be constituted or based of 30% (33% of 30%)
Black Money holders to deposit 25% for nation’s development
Well, the scheme also entails the declarants to deposit 25 percent if the income which has been undisclosed uptill now, in a scheme which is going to be operated by the government in line with the R.B.I.
This is the money which will be used for the development and infrastructure of the country such as on health, education etc.
Well, the black money holders who in the event will be caught have to face certainly a very embarrassing situation where they will be coming under the provisions of the Income Tax law with a penalty of 60% with an additional of 25% surcharge of tax (amounting to 15%). Hence, considering these two penalties, the total amount is going to be 75%.
Point to be Noted
The income tax law regards “RETURNED INCOME” and “ASSESSED INCOME” differently
The Taxation Laws 2016 has got green signal to give harshest of the penalties for unaccounted investment, or for those credits, which the individual can’t explain. Same goes for the assets, investments which has been done etc.
Currently, as part of 60 percent tax penalty, there will be an additional rise in penalty with 30 per cent flat tax rate plus surcharge and cess. Hence, it amounts to total 75%. It is upto assessing office to levy an additional tax penalty thereby making it even higher at 85%
Hasmukh Adhia who is revenue secretary is of the view that such strict norms were quite necessary in the event of people holding black money.