Yet another disclosure scheme with 50% tax rate

 

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The government on Monday unveiled yet another disclosure scheme for deposits made till December 30 and proposed amendments in the Income-Tax Act, proposing harsher penalty for evaders.

Finance Minister Arun Jaitley introduced a Bill to this effect in Parliament on Monday. This is the third income disclosure scheme introduced by the Bharatiya Janata Party (BJP) government in the past two years.

The latest disclosure scheme – Pradhan Mantri Garib Kalyan Yojana – will allow those depositing money in banned Rs 500 and Rs 1,000 notes to enjoy immunity from certain taxation laws by paying a 50% Tax on the undisclosed income. However, the declarants will have to deposit a fourth of the undisclosed income with a four-year lock-in.

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