Govt gives 3 more months to come clean on black money

New Delhi : Warning black money hoarders that just by depositing money in bank accounts would not make it white, the government today announced a long window for the income declaration scheme stretching up to March 31, offering a chance to pay 50 per cent tax on bank deposits of the old currencies made post-demonetisation.
The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana will commence tomorrow and will remain open for declarations up to March 31. Announcing the new black money disclosure scheme, Revenue Secretary Hasmukh Adhia said the window has been put in place to give an opportunity to a large number of people to disclose their black money and also give time to the Income Tax Department post the deposit of notes after December 31 to analyse the data and issue notices to income tax evaders.
Adhia warned that people should not think that merely putting money in banks would make it white. “Until due tax is paid, the money will not be white,” he said. Adhia said stringent penalties have been prescribed in the new provisions, but the declarations made under the new scheme will be kept secret. The scheme allows people to deposit money in their accounts by paying 50 per cent of the total amount — 30 per cent as tax, 10 per cent as penalty and 33 per cent of the taxed amount, that is 10 per cent, as Garib Kalyan cess. There is also a mandatory deposit of 25 per cent of the undisclosed income in Pradhan Mantri Garib Kalyan Deposit Scheme. The deposits are interest free and have a lock-in period of four years.