Government proposed amendments in Income tax provisions

The government has proposed few amendments in the existing Income tax provisions in order to catch up those people who want to convert black money into white using illegal channels. At same time, it has created confusion among a section of people.

The government also cleared that it is only for unaccounted or black money. It will not affect any genuine tax payers.

1.    The government will charge 30 percent tax and 33 percent surcharge of the tax with 10 percent penalty. It amounts to total 50 percent of income declared.

2.    The government will deposit 25% of declared income in the Pradhan Mantri Garib Kalyan Yojana or PMGKY-interest free deposit scheme – for four years. For instance, if a person deposit 1 crore rupee, 49.9 percent will be deducted as tax, surcharge & penalty. Out of the rest 50 lakh, 25 lakh will be deposited in PMGKY for four years.

3. Anyone who continues to hold onto undisclosed cash & caught then according to existing tax provisions, 75 percent tax will be charged on his/her income. The assessing officer can charge 10 percent penalty in addition to the 75 percent tax. 

4.    The jewelry or gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions.

5.    The Government also clarified that no seizure of jewelry and ornaments to the extent of 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male of the family shall be made.

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AJSH helped various individuals in company formation in India. They offer services such as auditing services, tax consulting services and foreign investment approvals. 

Original Source: http://bit.ly/2h51ben