Govt to not extend Dec 30 deadline for depositing old notes

It has asked citizens to deposit all old Rs. 500 and Rs. 1000 notes in banks and post offices by Dec 30.

The Centre on Nov 8 announced to ban Rs 500 and Rs. 1000 currency notes.

On Monday, the government proposed new rules to tax black money that are being recovered.

As a step taken in the same direction, Union Finance Minister Arun Jaitley on Monday introduced the Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.

The Lok Sabha on Tuesday passed the tax amendment bill.

According to the bill, the Government should give the tax defaulters an opportunity to pay taxes with heavy penalty and allow them to come clean.

In this backdrop, an alternative Scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) has been proposed in the Bill.

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied, read a government statement.

In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, read the statement.

This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality.