The government has developed a new way for the tax swindles to disclose their unaccounted money. The center government on Friday night approved an amendment to the Income Tax Act which would charge a 50 percent tax penalty on disclosing inexplicable bank deposits using the scrapped currency notes of Rs 500 and Rs 1000.
Scheme will continue till December to reveal unaccounted deposit
The scheme will be valid till December 30 with a four-year lock-in period for the remaining undisclosed cash, means the hoarder can get half their money back after a period of four years if they reveal their unlawful deposit.
The government, however, has also said that there will be a higher penalty for charging 90 percent tax for those who do not willingly disclose their hidden cash.
The alteration is the latest move which follows the government’s decision to ban on old higher denomination notes of Rs 500 and Rs 1,000. The decision led to a sudden increase in cash deposits after the demonetization move was announced on November 8. Jan Dhan Yojana accounts are one of the examples which have been deposited with about Rs 20,000crores just after the move.
Offenders will not be able to get their remaining for four years
As per the amendment, cash deposits made with the scrapped money of Rs 500 and Rs 1000 notes above the amount originally declared to the Income Tax authorities may attract 50 percent tax. On the other hand, reports said that the offender then will not able to get his remaining 25 percent of the original deposit until for four years after detection.
On November 8, the government had given a 50-day period for people to exchange or depositing their old notes of Rs 500 and Rs 1000. It is worth mentioning here that the amendment approved by the government have already sent to the president for his consent and will likely to be introduced in Parliament next week.
