1. Voluntary Disclosure
i. If any taxpayer voluntarily makes a declaration of his unaccounted money, then,as per the provisions of section 199C, he shall be liable to pay tax on such unaccounted money at the rate of 30% along with 33% Surcharge (on such tax) known as Pradhan Mantri Garib Kalyan Cess under section 199D.
ii. Also, as per the provisions of section 199E, such person shall be liable to pay a penalty @10% of his undisclosed income. Moreover, under section 199F, he is also liable to deposit an amount not less than 25% of such unaccounted income in Pradhan Mantri Garib Kalyan Deposit Secheme, 2016 which can be withdrawn by him after 4 years & which will not carry any interest payable to such person.
iii. Further as per section 115BBE, any income assessed u/s 68/69/69A/69B/69C/69D ( including share capital, unsecured loan etc) shall be taxable @ 60% instead of 30% plus 25% surcharge.
2. In case of Search
i. It is proposed that in case where search is initiated after 8th November 2016, tax payable by the assessee will be 60% of his unaccounted income along with 25% surcharge on such tax. In addition to tax penalty shall also be payable @ 10%.
The above provision can be summed up as follows:-