Demonetisation: ED conducts searches at over 40 locations to check black money

New Delhi: The Enforcement Directorate (ED) has conducted searches at over 40 locations across the country to check black money with hawala operators, others.

Meanwhile, Lok Sabha on Tuesday passed within minutes a major bill that provides a window to legalise black money post-demonetisation and a tax on that amount.

Marking transaction of the first legislative business in the two-week-old Winter Session, the Taxation Laws (2nd Amendment) Bill, 2016, was passed by the Lok Sabha after days of total washout due to paralysis on the demonetisation issue.

Jaitley said the bill was brought after it came to the government's notice that some people were trying to illegally exchange the demonetised Rs 1000 and Rs 500 currency notes.

He said as per the amendment proposed, those caught illegally converting money will have to cough up 60 percent tax plus penalties, which will come to 85 percent.

Those who disclose black money to banks will have to pay 50 percent tax, including surcharge and penalty. While they will get back 25 percent immediately, the rest 25 percent will be returned after 4 years.