A new amendment has been introduced to The Taxation Law 2016 on November 29, 2016 which states further action on illegal money conversion. This bill was passed during Lok Sabha sessions which demands tax returns on the money deposited to bank account after demonetisation started.
So, what’s new in it?
According to the new amendment, a 30 percent tax will be entailed for the declared income which has done after demonetisation. Added to this 30 percent, another 33 percent surcharge will be charged on the tax amount along with 10 percent penalty of the declared money. The grand total of this comes up to 50 percent liability of the total declared money. Moreover, the amendment also states that 25 percent of the declared money need to be deposited in an interest-free deposit scheme for an unlock able period of four years.
Added more to that, this new amendment also states that tax rate will go to flat 60% for the undeclared money of get caught. Top of this huge tax rate, a surcharge of 25 percent of the tax amount and a 10 percent penalty will be also charged. In total, the undeclared amount is liable to pay a higher rate of 85% income tax rate. These are two amendments declared for the new Taxation Laws 2016 on 29 December.
The explanation for this action:
Government has faced a lot of opposition from many renowned person regarding this bill but decided to stay stick with the new amendments. Money collected by this amendment will be used towards Pradhan Mantri Garib Kosh Yojna as declared by the Government. The demonetisation was started to take action against corruption and black money which has seen a great success in last few weeks.
Also, it has been announced that source of the money will not be asked that has been deposited to bank account or has been declared. If the 50% tax has been paid for the declared money than no action will be taken against the depositor by government or authority. The collected sur charge and the 25% deposit over undeclared money will be used for various government empowerment programs related to toilets, housing, primary education, health and infrastructure.
Additional scenario:
Also, various changes have been proposed for existing for tax penalty provisions to close all loop holes that can be misused by any citizen for personal interest. For example, penalty section 271AAB has been modified for search seizure cases. For the income admitted by the owner was liable to pat a tax of 10% which has been raised to 30% if tax has been paid. For any other rare situation, the penalty remains same as 60% of the seized money.
These amendments were also made for those persons who are converting old black money currency to new black money currency by illegal conversion. Also government authority has explained that search and seizer act have been modified to ensure cooperation from public with income tax raids.
You can file your Income Tax Return via All India ITR.
Also Read : What Next When You Have Forgot to File Tax Return?
So, what’s new in it?
According to the new amendment, a 30 percent tax will be entailed for the declared income which has done after demonetisation. Added to this 30 percent, another 33 percent surcharge will be charged on the tax amount along with 10 percent penalty of the declared money. The grand total of this comes up to 50 percent liability of the total declared money. Moreover, the amendment also states that 25 percent of the declared money need to be deposited in an interest-free deposit scheme for an unlock able period of four years.
Added more to that, this new amendment also states that tax rate will go to flat 60% for the undeclared money of get caught. Top of this huge tax rate, a surcharge of 25 percent of the tax amount and a 10 percent penalty will be also charged. In total, the undeclared amount is liable to pay a higher rate of 85% income tax rate. These are two amendments declared for the new Taxation Laws 2016 on 29 December.
The explanation for this action:
Government has faced a lot of opposition from many renowned person regarding this bill but decided to stay stick with the new amendments. Money collected by this amendment will be used towards Pradhan Mantri Garib Kosh Yojna as declared by the Government. The demonetisation was started to take action against corruption and black money which has seen a great success in last few weeks.
Also, it has been announced that source of the money will not be asked that has been deposited to bank account or has been declared. If the 50% tax has been paid for the declared money than no action will be taken against the depositor by government or authority. The collected sur charge and the 25% deposit over undeclared money will be used for various government empowerment programs related to toilets, housing, primary education, health and infrastructure.
Additional scenario:
Also, various changes have been proposed for existing for tax penalty provisions to close all loop holes that can be misused by any citizen for personal interest. For example, penalty section 271AAB has been modified for search seizure cases. For the income admitted by the owner was liable to pat a tax of 10% which has been raised to 30% if tax has been paid. For any other rare situation, the penalty remains same as 60% of the seized money.
These amendments were also made for those persons who are converting old black money currency to new black money currency by illegal conversion. Also government authority has explained that search and seizer act have been modified to ensure cooperation from public with income tax raids.
You can file your Income Tax Return via All India ITR.
Also Read : What Next When You Have Forgot to File Tax Return?
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