Govt to give another chance to tax evaders to come clean; to notify fresh scheme to deposit black money

New Delhi: It may sound relief to all those tax dodgers who lost the opportunity offered by Income Disclosure Scheme that allowed black money hoarders to turn their black money white by paying tax on it.

As per a PTI report, the government is likely to notify a fresh scheme, as as early as this week, giving tax dodgers another chance to come clean by paying 50 percent of tax on junked currency deposited in banks post demonetisation.

The report added that the notification is also likely to specify that the disclosures in PMGKY scheme will ensure that no questions will be asked about the source of fund and there would be immunity from Wealth Tax, civil laws and other taxation laws. But there is no immunity from FEMA, PMLA, Narcotics and foreign Black Money Act. 

The Pradhan Mantri Garib Kalyan Yojana (PMGKY) provides for 50 percent taxes and surcharge on declarations of unaccounted cash deposited in banks. Declarents also have to park a quarter of the total sum in a non-interest bearing deposit for four years

In order tackle black money, Prime Minister Narendra Modi announced on November 8 that Rs 500 and Rs 1,000 will cease to be legal tender since midnight, and asked the holders of these notes to deposit in banks by December 30. Since then. People have been queueing up before the banks to deposit junked currencies.

As per RBI, As of November 10, Rs 11.85 lakh crore in form of old 500 and 1,000 rupee notes have been deposited into banks. It was estimated that the now defunct notes constituted 86 percent, or Rs 14.5 lakh crore, in circulation.

With PTI inputs