No tax immunity from Black Money Act, Fema

New Delhi: The Union government has proposed to tax 50 per cent unaccounted demonetised cash that is disclosed voluntarily till December 30, after which a steep up to 85 per cent tax and penalty will be levied on undisclosed wealth that is discovered by authorities.

It would ensure immunity from Wealth Tax, civil laws and other taxation laws. But there is no immunity from Fema,, PMLA, Narcotics, and Black Money Act”.

The Bill proposes to amend Section 115BBE of the Income-Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders who choose to disclose after PMGKY ends.

Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 per cent.

The scheme comes within two months of the close of domestic black money disclosure scheme wherein the total incidence of tax was 45 per cent.

A total of Rs 65,250 crore in black money was brought to book by the close of the scheme on September 30. “We have seen that some people were trying to convert black money to black again by using new currency,” Mr Adhia said adding that the provision has been amended to bring 75-85 per cent tax.

It proposes to make penalty provisions for wealth found during search and seizures more stringent by raising the fines to 30 per cent of the income discovered which is admitted by the assessee and taxes are paid.

This compares to levy of 10 per cent in such cases income admitted, returned and taxes paid and 20 per cent where income is not admitted but taxes are paid. In all other cases the levy remains at 60 per cent.