Last chance to come clean on black money 0%/100% 28

Last chance to come clean on black money

Written by Aravind   |   Posted: 12/17/2016 11:05 AM IST

Income disclosure scheme, the last attempt by the government to curb the black money inflow in the system, is all set to roll out on December 17 and end on March 31, 2016. The Central government has unveiled a new scheme under which those are having undisclosed income and assets located in India can come clean by paying a tax of around 50 percent.

In this, unlike the earlier income declaration scheme, the tax evader will have to first pay the tax, put money in the deposit scheme and then make a declaration, either online or at an income tax office. The new scheme offers the tax dodgers confidentially and immunity from the prosecution.

A declarant of undisclosed income needs to pay a tax at the rate of 30%, a penalty at the rate of 10% and a Pradhan Mantri Garib Kalyan Cess at the rate of 33% on the tax, all of which add up to around 50%.

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The declarant should deposit 25% of the undisclosed income in the zero-interest Pradhan Mantri Garib Kalyan Deposit Scheme and will be locked for four years. He needs to furnish his permanent account number (PAN) during the declaration. Part of the proceeds of the scheme will be used for welfare schemes for the poor.

Declarations made under this scheme will be kept confidential and those coming clean will not be prosecuted under any other legislations such as Central Excise Act, Wealth Tax Act and Companies Act. There will be no immunity from the prosecution under criminal acts like the Prevention of Corruption Act and Prevention of Money Laundering Act.

By Premji

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Tags : Black money  demonetisation  Income Tax act  Income disclosure scheme  

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