Income Tax Amendment Bill | Fusion - WeRIndia

Income Tax Amendment Bill

Income Tax Amendment Bill

In the wake of demonetization in the country, huge cash is deposited in banks. Most of the black money holders utilized all possible ways to avoid tax and escape from the law.

But, the government was already prepared to counter the moves of these people. Hence, various amendments are proposed to the Income Tax Act yesterday in House.

Based on the new recommendations, people should have to pay 50 per cent tax with penalty and surcharge on unaccounted money that was deposited after the announcement of demonetization. They have to pay with up to 85 per cent if they do not disclose the income but are caught with the income.

Yesterday, Arun Jaitley, the Finance Minister presented a bill to make the amendments to the existing Income Tax Law. The black money declarants should deposit 25 per cent of the disclosed amount for a period of four years in anti-poverty scheme for which no interest is paid.

The government as promised earlier, assured that the accounts with deposits of more than ₹2.5 lakhs will be scrutinized. If proper sources are shown, then there is no need to worry. Otherwise, they have to pay penalty in addition to the income tax.

Many of the black money hoarders are using normal people’s accounts to get their money deposited into banks. Hence, government came up with stringent rules in order make sure that they won’t escape the law.

At present, there are provisions for under-reporting or misreporting in Income Tax Act. People who under-reported their income should pay 50 per cent tax. If they misreport their income, they have to pay 200 per cent tax. These provisions remained the same and no changes are being made to them.

Image credit: Image by Steve Buissinne from Pixabay (Free for commercial use)

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