Demonetisation: Lok Sabha passes new Income Tax Amendment Bill
Zee Media Bureau
New Delhi: Lok Sabha on Tuesday passed Income Tax Amendment Bill, which provides yet another opportunity to black money holders to legalise their wealth.
The Bill proposes to tax at 50 percent the unaccounted demonetised cash that is disclosed voluntarily till December 30, after which a steep up to 85 percent tax and penalty will be levied on undisclosed wealth that is discovered by authorities.
Amidst sloganeering in the Lok Sabha, Finance Minister Arun Jaitley today said that Prime Minister Narendra Modi has made a huge announcement on November 8 to fight the menace of black money and corruption in the country.
“Govt moved amendments in Income tax law after it saw that a few people were still trying to convert black money into white post demonetisation,” said Jaitley.
The Taxation Laws (Second Amendment) Bill, 2016, introduced on Monday in the Lok Sabha by Finance Minister Arun Jaitley, nearly three weeks after Prime Minister Narendra Modi banned high denomination currency notes, also provides for immunity from being questioned on the source of funds.
It amends the Income Tax Act to also provide for black money declarants having to mandatorily park 25 percent of that wealth in zero-interest, four-year-no-withdrawal scheme.