Govt asks tax cheats to come clean by March, sets up email for black money tip-offs

[Kool_SRG]

 

Giving one last chance to black money holders, the government said on Friday that they have time till March-end to come clean by paying 50% tax on bank deposits of junk currencies made after the demonetisation exercise.

Offering tax dodgers confidentially and immunity from prosecution under the new tax evasion amnesty scheme Pradhan Mantri Garib Kalyan Yojana, which kicks in Saturday, revenue secretary Hasmukh Adhia said non-disclosure of deposits made in banks after the Rs 500 and Rs 1000 notes were junked will attract stiffer penalties as well as prosecution.

Not declaring black money under the scheme now but showing it as income in the tax return form would lead to a total levy of 77.25% in taxes and penalty. In case the disclosure is not made either using the scheme or in return, a further 10% penalty on tax will be levied followed by prosecution, he said.

Read: SC refuses to pass interim order on demonetisation, restrains HCs from hearing petitions

The disclosure scheme is part of The Taxation Laws (Second Amendment) Act, 2016, which was approved by the Lok Sabha earlier this month and has been assented by the President. The PMGKY scheme that commences December 17 will remain open for declarations up to March 31, Adhia told reporters.

“Beginning tomorrow most of the banks will have challans to be filled for depositing tax for availing the PMGKY scheme. Only after payment of 50 per cent tax and setting aside the 25 per cent of the remaining undisclosed amount for 4 year, a person can avail the PMGKY scheme,” he said.

Announcing that an email-ID has been set up to encourage people to give information about tax cheats, Adhia emphasised that mere depositing of cash in banks will not convert black money into white. Taxes have to be paid.

As per the scheme, taxes will have to be paid first and then the scheme can be availed on production of tax receipt, unlike the recent Income Disclosure Scheme and other such plans wherein disclosures were made first and taxes were recovered later.

 

Also, as the disclosures will be kept confidential, the holder of unaccounted cash need not disclose it in income tax Returns forms.

The proposal was the latest in a series of high-stakes policy moves by the government, three weeks after it ordered the draining out of 86% of cash in the economy to fight corruption and counterfeiting.

For those holding unaccounted cash, it offered new tax evasion amnesty scheme wherein 50% tax will be charged on declarations and quarter of the total sum be parked in a non-interest bearing deposit for four years.

 

Adhia said: “Non-declaration of undisclosed cash or deposit in accounts under the scheme will render such undisclosed income liable to tax, surcharge and cess totalling to 77.25 per cent of such income if it is declared in the income tax returns.

“In case the same is not shown in the return of income a further penalty of 10% of tax shall also be levied followed by prosecution.”

The government, he said, through the Financial Intelligence Unit (FIU) is getting data about every single deposit in bank account. Also, income tax, enforcement directorate and other investigative agencies are keeping a close watch on the information.

“We have information from FIU regarding how much deposits have been made in dormant account, (zero-balance) Jan Dhan, urban cooperative bank, how much repayment of loans have been made in cash, RTGS transfers, withdrawal and hence I-T department has been successful on raids,” Adhia said.

Mail id

Adhia also said information on black money can be sent to the government on a mail ID -- ‘[email protected]’.

He said a dedicated team will analyse the information received through the email id.

[JANASENA]

I will send an email about Rahul Gandhi 

[Feelingbad]

Already damage done... out of 14 lac cr, 13 lac cr already deposited... still 2 weeks to go. If it touches 14 lac cr by then, it means that all black money & fake currency got into white. 

You got to be an @sshole to not realize that... or making people @ssholes... I believe on 2nd.. 

[Feelingbad]

Mail Id naa...Gaadidha m@ddem kaadha....