Income Tax Amendment Bill
After the prohibition of 500 and 1000 rupee notes, new Income Tax Amendment Bill has been passed by the Arun Jaitley to disclose the black money. Under this scheme, people holding black money must Pay 50% Tax on Unaccounted Deposits, Else 85% if unable to disclose it and are wedged. By the end of this year, all the demonetized currency is to be deposited in various banks otherwise deposits which exceeds the limit of 2.5 lakhs is to be taxed.
It is mandatory to deposit 25% of the amount disclosed in anti-poverty scheme without interest with a lock in period of 4 years. As being considered by the Lok Sabha with huge majority, this bill is definite to be cleared in session of Parliament. In case of rejection by the owner, 85% of the amount will be imposed under taxes and penalties. Have a look on the facts related to Income tax amendment bill by which you may easily pay your tax liability.
Income Tax Amendment Bill
Under Pradhan Mantri Grabi Kalyan Yojana 2016
- Those who have asserted money through illegal or unfair means previously but now in the condition of demonetization of 500 or 1000 rupee notes, liable to pay tax at the rate of 30% of unrevealed income.
- Besides 50% tax along with surcharge and penalty are taken into considered.
- For four years, quarter of the acknowledged income is to be deposited in the interest free deposit scheme.
- If you disclose your money in PMGKY, no one will inquire about the basis of fund. Complete invulnerability from civil laws, wealth tax and other taxation laws will be assessed.
- Remember, No invulnerability towards FEMA, Narcotics, PMLA and black money act will be provided.
- From November 10, all the demonetized money deposited will be taken under account.
- Last date for deposits is likely to be 30 December but is yet to be confirmed after the bill is passed.
- In finance act 2016, PMGKY will be introduced as “New Chapter 9.”
Provision Of Penalty On Undisclosed Income
- With addition to this, 10% penalty will be imposed on unrevealed income with a surcharge termed as PMGK cess at the rate of 33% of tax. (33% of 30%).
- In session with RBI, the government reported that 25% of the unrevealed income has to be deposited by the declarants.
Utility Of Currency From The Scheme
- Projects like Irrigation, infrastructure, toilets, housing, primary health, primary health and livelihood will be targeted from this currency value.
- To promote the justice and equality among all the citizens of India, this action is taken.
For Assessee Holding Unrevealed Income And Are Wedged
- According to the provisions of the Income Tax Law, existing provisions will be amended and they are liable to pay 60% tax in addition to surcharge comprising of 25% of tax (15%).
- So finally, Assessee holding unrevealed income is liable to pay 75% of total tax to the government.
Provision Of Penalty Under Unrevealed Income
- Based on the decision of the assessing officer, 10% penalty with accumulation of 75% of tax may be charged.
- Remember in case of under reporting of income, existing provision of penalty is 50% of tax but in the condition of misreporting the provision is changed to 200% of tax.
- The distinction involving in returned income and assessed income is simply treated as under reporting or misreporting income.
- No alteration by anyone can be made in this regard.
The Taxation Laws (Second Amendment) Bill, 2016
- According to the intention of The Taxation Laws (Second Amendment Bill 2016), punitive tax, surcharge in addition to penalty on inexplicable credit, cash, investment and other assets are included in amendment of Section 115BBE of the Income Tax Act.
Provisions For Penalty In Cases Of Search And Seizure
- As per the amendments made in the penalty section, 30% of income if it is confessed with addition to returns filed and taxes paid.
- In other conditions, 60% of the penalty is to be imposed.
Statements Of Revenue Secretary Hasmukh Adhia
- “Deterrent provisions were necessary so that people have the fear of hoarding black money.” Government has taken this action in order to remove the supply of black money from the market.
Pay Your Taxes Now!!!
Hope, you get all the desired information on this page related to Income Tax Amendment Bill in which you may pay 50% Tax on Unaccounted Deposits, Else 85% if Not is to be imposed if you will be wedged later on. For more details, stay tuned with our web portal coolexample.in