Aastha Singhal

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amount not less than 25% of such unaccounted income in Pradhan Mantri Garib Kalyan Deposit Secheme, 2016 which can be withdrawn by him after 4 years & which will not carry any interest payable to such person.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:-



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Category : Income Tax (28348)
Type : Articles (18239)
Tags : black money (740) Demonetization (479) PMGKY 2016 (62)

3 responses to “FM tables Taxation Laws (Second Amendment) Bill, 2016 in Lok Sabha”

  1. Adv phadke says:

    Such cases may be subjected to limited srutiny under Cass and one has to give only proper answer to it .however do not worry .consult your tax expert.

  2. RAJAGOPAL says:

    Dear Mr Ramamurthy
    House wife saving is a pin money savings out of money given by her husband for household expenses. It is not black money if the money given by her husband out of tax paid income. Suppose it is out of her income and if the same is less than taxable limit of each year, then not black money. All old currency deposited in not black money.

    Old couple case-Income tax return do not ask for personal assets and liabilities. So not mentioning the cash balance in ITR is not offence. As long as it is out of tax paid income/exempted income, it is not black money even when deposited more than 2.50 lakh. Always seek the advise of CA

  3. ramamurty says:

    1.A house wife has accumulated over the years a sum of 1 lakh in terms of old 1000 or 500 notes and now deposits in her account.
    2. A old couple keep some money at home always, some 60,000 for any emergencies.
    Though both are filing ITRs,( having incomes around 2 lakh -3 lakh per annum) none of these amounts are ever mentioned in tax returns.

    Will these news laws in any way be applicable in the above cases. Many people of middle class are having this doubt. kindly clarify.

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