Lok Sabha passes second amendment to Taxation Laws Bill 2016

Press Release (ePRNews.com) - INDORE, India - Nov 30, 2016 - With a view to curb the black money threat, the Modi government moved its demonetization drive to another level on Tuesday by passing the second amendment to Taxation Laws Bill 2016, amid uproar in the parliament. The Bill seeks to tax upto 85% on those caught with undisclosed income post demonetization.

The Finance Minister Arun Jaitley knocked the opposition stating that the government introduced the bill to amend the Income Tax law in a bid to prevent a section of people who have been trying to convert black money into white after demonetization.

During the introduction in the Parliament, Jaitley stated that the bill was intended at tackling black money and reiterated the stand of government on demonetization. As per the amendment proposed, those caught illegally converting money will have to pay 60% tax plus penalties, which will come to 85%, he said. Those who unveil the black money to banks will have to pay 50% tax, including penalty and surcharge. While they will get back 25% immediately, the rest 25% per cent will be returned after 4 years.

The bill provides for three dimensions. The first case involves a voluntary declaration of black money, wherein the declarant shall be required to pay tax at 30 percent of the unrevealed income and penalty at 10 percent of the undisclosed income.

A surcharge Pradhan Mantri Garib Kalyan Cess at 33 percent of tax is also proposed. Besides tax, surcharge and penalty the declarant shall have to deposit 25 percent of undisclosed income in a deposit scheme for a period of four years.  This amount deposited for 4 years is proposed to be utilized for welfare schemes such as irrigation, housing, infrastructure.

In the second dimension, those who keep on holding on to undisclosed cash and are caught, existing provisions of the Income Tax law will be amended. In such a case, a flat rate of 60% plus a surcharge of 25% of tax will be charged.  This amounts to a levy of 75% of undisclosed amount. Further, an additional 10% penalty can also be levied.

In the third dimension, if any black money is unearthed during a search and seizure, a 30% penalty will be charged above taxes if an admission is made and this will be doubled to 60% if in any other case.

The disclosures in Pradhan Mantri Garib Kalyan Yojana scheme will ensure that no questions will be raised about the source of fund. It would ensure immunity from wealth tax, civil laws and other taxation laws. But there is no immunity from Foreign Exchange Management Act , Prevention of Money Laundering Act, Narcotics, and black money act.

visit : http://www.moneymakerfinancial.com

Source : Money Maker Research

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