New scheme to declare unaccounted money starts from tomorrow
- by Nick Cohen
- in Industry
- — Dec 17, 2016
To get more information on money launderers, India's tax department has created a special email address where anyone can provide tip-off information. A declaration can be given before the Income Tax officer", Revenue Secretary Hasmukh Adhia told media persons here.
Under the Pradhan Mantri Garib Kalyan Yojana, people can declare their illegal money and pay 50 per cent as tax till March 31, Revenue Secretary Hasmukh Adhia said today.
Also, as the disclosures will be kept confidential, the holder of unaccounted cash need not disclose it in Income Tax Returns forms.
The Lok Sabha, which passed the Taxation Laws (2nd Amendment) Bill, 2016, on 29 November, said it proposes to levy a total tax, penalty and surcharge of 50 percent on the amount deposited post demonetisation while higher taxes and stiffer penalty of up to 85 percent await those who don't disclose but are caught.
"He however, said mere depositing black money won't make it white unless tax is paid on it".
Cautioning the people with unaccounted money, Jain said "Don't look for ways to convert the money". Declarants also have to park a quarter of the total sum in a non-interest bearing deposit for four years.
The government, said Adhia, through the Financial Intelligence Unit (FIU) is getting data about every single deposit in bank account.
"If it is a deposit in the account of a political party, they are exempt (under the Income Tax Act)".
"Nobody should think that deposits made into accounts have become white. But if it is deposited in individual's account then that information will come into our radar".
"So the assessees should know that their deposits in bank accounts are being watched. They are under our radar", said Mr Adhia.
Act 2016 came into force on December 15th under the scheme of Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016. Further, the tax department also conducted searches and seizures in about 291 cases and carried out surveys in 2915 cases, said CBDT chairman.
Since the notes ban, around 316 crores has been seized in multiple raids by taxmen and around 80 crores was in brand new currency, said the official.
