New Delhi, November 29
To put a check to black money holders, the Central government has made key amendments to Income Tax Act. According to the latest proposals, the government will take 50 per cent of the unaccounted cash deposits. Of the remaining 50 per cent, 25 per cent will be credited in Pradhan Mantri Garib Kalyan, with zero interest and four-year-no-withdrawal scheme. The remaining 25 per cent could be withdrawn immediately.
This rule is applicable to all unaccounted cash deposits of more than Rs. 2.5 lakh in bank accounts. The government is going to take half of the money from unaccounted cash deposits through 30% tax, 10% penalty, 33% surcharge on 30% tax and other taxes. About 83% of black money recovered during IT raids also will be taken over by the government.
After Modi’s announcement of demonetization of Rs. 500 and Rs. 1,000 currency notes, more than Rs. 60,000 crore was deposited in Jan Dhan accounts and also huge amounts in other bank accounts throughout the country.
Amendments were made in the IT Act after the vigilance sources and IT departments doubted links between the huge deposits of old currency notes and black money. There are chances of levying 85% penalty on those caught with the banned currency notes during IT raids.