New Delhi: Reacting to Delhi Chief Minister Arvind Kejriwal`s statement on the amendments in the taxation law, Finance Minister Arun Jaitley on Wednesday dismissed it as factually incorrect.

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Kejriwal, in a reference to the amendments in the taxation laws, said on Wednesday that the scheme suggests 50 per cent tax on the black money.

"Factually incorrect statements have been made by Arvind Kejriwal in relation to changes proposed in the Taxation Law," Jaitley said in a tweet.

He further questioned the intention behind Kejriwal`s statements.

"Why should a former IRS officer, Arvind Kejriwal factually misrepresent changes in the Taxation Law," Jaitley said.

To this, Kejriwal replied making a reference to Pradhan Mantri Garib Kalyan Yojana (PMGKY) stating that this has provision of only 10 per cent penalty.

"Sir, earlier there was 200 per cent penalty on black money. Now you have brought PMGKY which has only 10 per cent penalty. You and I are saying the same thing," Kejriwal replied in a tweet.

According to the Taxation Laws (Second Amendment) Bill, 2016, the declarant will have to pay a tax of 60 per cent and an additional surcharge of 25 per cent of the tax (i.e. 15 per cent of such income), resulting in a total tax amounting to approximately 75 per cent.

"People are telling me they had been cheated. Prime Minister Narendra Modi is saying that take bribe, make black money and we will split it in 50 per cent to make it legal," Kejriwal asserted while talking to the media in Punjab on Wednesday.