The Taxation Laws (Second Amendment) Act, 2016 has come into force on December 15 2016 under the scheme of Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
The scheme shall commence on December 17, 2016, and shall remain open for declarations up till March 31st, 2017 notifies Central Board of direct Taxation (CBDT).
The government has offered black-money holders 3 more months, starting from Saturday December 17, 2016. The Pradhan Mantri Garib Kalyan Yojna (PMGKY), which was announced earlier, will formally open on Saturday and close on March 31, 2017.
The Centre also created an email id –email@example.com – which can be used to report information on black money.
The PMGKY will be the last chance to black-money holders to come clean, according to the Central Board of Direct Taxes (CBDT) Chairman Sudhir Chandra.
CBDT Chairman Sudhir Chandra cautioned black-money holders that the government had its hawk eye trained on them. “Everybody should be very clear that their deposits are being monitored and we are working on this data. Therefore, they should come very very clean under this scheme, which is the last window available for any taxpayer”.
Black-money holders have been offered confidentiality and immunity from prosecution if they declare their unexplained bank deposits of banned Rs 500 and Rs 1,000 notes and pay 49.90 per cent tax, surcharge and penalty (30 per cent tax on undisclosed income, 33 per cent surcharge on tax and a 10 per cent penalty on income) during the specified window.
Besides the levies, the declarant would have to mandatorily put 25 per cent of the undisclosed income in the PMGKY Deposit Scheme 2016, which is interest-free and has a lock-in period of four years.
Those who would miss this opportunity to come out into the open with their undeclared incomes would be liable to tax, surcharge and cess of 77.25 per cent of the income, if declared in income tax returns.
And, if it went undeclared even in the tax returns then there would be a further penalty 10 per cent on tax, “followed by prosecution”.
This scheme has come into force with the notification of the Taxation Laws (Second Amendment) Act, 2016 and the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (the Scheme) on Thursday.
CBDT Chairman Sushil Chandra said, the department has issued around 3000 notices on the basis of deposits in bank accounts and have seized 316 crore rupees in cash. Out of which cash in new currency is above 80 crore rupees and jewellery worth 76 crore rupees.
The total seizure is about 393 crore rupees. He said, 2600 crore rupees of undisclosed income has been admitted by the taxpayers post -demonetization.
Earlier, President Pranab Mukherjee gave his assent to the The Taxation Laws (Second Amendment) Bill. It was passed by Lok Sabha last month as a money bill without discussion.
Later, the Bill was sent to the Rajya Sabha but it could not take up the legislation following the deadlock between the government and the opposition. Since it was a money bill, it is deemed passed if it is not returned by the Upper House to the Lok Sabha within 14 days.