New Delhi: It is learnt the Centre is considering reviving the income disclosure scheme for black money deposited in banks under the demonetisation of Rs 500 and Rs 1,000 currency notes to give a last chance to people with unaccounted funds to come clean.
Sources said the Union Cabinet had on Thursday discussed amendments to the Income-Tax Act. One of the proposals was that people with unaccounted money can declare it and get an amnesty after paying 50% tax. Half of the amount left after paying taxes (or 25% of the total sum declared) will be locked in for four years, and will not earn any interest. The rest (other 25%) will be given back. The money raised through this tax could be used for the development of infrastructure.
Those with unaccounted money who choose not to come clean by paying taxes will have to pay 90% tax and penalty. “If the income-tax authorities come to know that a person has deposited unaccounted money in banks and has not declared it under the proposed scheme, he will have to pay 90 per cent tax and penalty,” a source said. The government may bring this amendment in the current session of Parliament after getting the President’s approval, the source added.
People who are struggling with unaccounted funds after the demonetisation will therefore have the option to come clean under the proposed scheme.
