New income declaration scheme explained - Demonetisation News

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New income declaration scheme explained - Demonetisation News Govt has proposed a total tax, penalty and surcharge of 50% on amount deposited since demonetisation

Govt has proposed a total tax, penalty and surcharge of 50% on amount deposited since demonetisation


New-income-declaration-scheme

Evasion of taxes deprives the nation of critical resources which could enable the Government to undertake anti-poverty and development programmes. It also puts a disproportionate burden on the honest taxpayers who have to bear the brunt of higher taxes to make up for the revenue leakage. As a step forward to curb black money, bank notes of existing series of denomination of the value of Rs.500 and Rs.1000 [Specified Bank Notes(SBN)] have been recently withdrawn the Reserve Bank of India.
Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision. 

Further, in the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy. 

In this backdrop, an alternative Scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) has been proposed in the Bill. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’. This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality. 

An overview of the amendment proposed in the Bill are placed below.

PARTICULARS

EXISTING PROVISIONS

PROPOSED PROVISIONS

General provision for penalty PENALTY (Section 270A)
Under-reporting - @50% of tax
Misreporting - @200% of tax
(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
No changes proposed
Provisions for taxation & penalty of unexplained credit, investment, cash and other assets TAX (Section 115BBE)
Flat rate of tax @30% + surcharge + cess
(No expense, deductions, set-off is allowed)
TAX (Section 115BBE)
Flat rate of tax @60% + surcharge @25% of tax (i.e. 15% of such income). So total incidence of tax is 75% approx.
(No expense, deductions, set-off is allowed)
PENALTY (Section 271AAC)
If Assessing Officer determines income referred to in section 115BBE, penalty @10% of tax payable in addition to tax (including surcharge) of 75%
Penalty for search seizure cases Penalty (271AAB)
(i) 10% of income, if admitted, returned and taxes are paid
(ii) 20% of income, if not admitted but returned and taxes are paid
(iii) 60% of income in any other case
Penalty (271AAB)
(i) 30% of income, if admitted, returned and taxes are paid
(ii) 60% of income in any other case
Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared:
(A) Tax, Surcharge, Penalty payable
Tax @30% of income declared
Surcharge @33% of tax
Penalty @10% of income declared
Total @50% of income (approx.)
(B) Deposit
25% of declared income to be deposited in interest
free Deposit Scheme for four years.

COMMENTS

Name

7th CPC Notification,16,8th,41,Accountant,78,Administrative,17,Admission,9,Admit Card,18,Advisor,6,Agriculture,25,AIIMS,32,All India,270,ALP,1,Andaman and Nicobar,5,Andhra Pradesh,41,ANM,6,Apprentice Posts,43,APPSC,11,APSC,7,Architect,3,Army,29,Arunachal Pradesh,3,ASM,3,Assam,50,Assistant,307,Audit Officer,10,Aviation,28,Ayurvedic,4,B Arch,18,B Com,387,B Ed,75,B Pharma,39,B Sc,497,B Tech,422,BA,373,Bank,134,BARC,1,BBA,2,BCA,72,BDS,40,BE,172,Bihar,43,BPSC,1,BSF,17,BSSC,4,CA,70,CAPF,23,Carpenter,7,CAT,1,Central Govt,446,CEO,6,CGPSC,11,Chandigarh,8,Chhattisgarh,39,CISF,3,Civil,15,Clerks,202,CMA,5,Commander,4,Computer Operator,9,Computer Science,20,Constables,70,Consultant,3,Cook,13,Coordinators,1,Counsellor,6,Court,57,CPSE,1,Crane Operator,1,CRPF,33,CS,25,CSIR,4,Delhi,116,DEO,88,Dev University,6,DFCCIL,2,DGT,1,Diploma,285,Director,14,Disability,1,Disaster Management Institute,1,Distric Consultant,1,Distric Programme Officer,2,DNB,15,Doctor,55,DRDO,4,Drivers Job,48,DSSSB,2,DTL,1,DTP Operator,1,Dy.Surveyor,2,ECL,1,Economics,2,Editor,1,Electrical,43,Electrician Job,46,Electronics,22,Engineer,307,Engineering Services Examination,14,Entrance Examination,1,EPFO,4,EPI,1,ESIC,33,Ex-servicemen,2,exam,60,Examination,14,Executive,17,Executive Trainee,8,Finance Manager,7,Financial,4,Financial Job,7,Fire Station Officer,3,Fireman,19,Fitment Formula,1,Fitter,28,FLC Co- cordinators,1,FOR BANKS,2,FOR CLERK,2,FOR CLERK. FOR BANKS,1,FOR OTHER EXAM.,3,FOR PO,3,Foremen,8,Forest Guard,2,Gail India,2,GATE,20,GCECT,1,GDMOs,1,General Central Services,1,Geologist,7,Geophysicist,1,GITAM UNIVERSITY,3,GK,3,Goa,13,Goods Guard,2,Government Job,24,Govt Staff news,28,GPSC,12,Grade-IV (DASS),1,Graduate,683,Graphic,2,Greeting,2,Group C,1,Group D,1,GS,1,GSL,1,GSSSB,11,Gujarat,67,Haryana,72,Hawaldar,1,HCL,4,Health Inspector,1,Himachal Pradesh,42,Hindi Translator,3,Home Science,1,Hospital,12,Hot,26,HPCL,1,HPGCL,1,HPL India,1,HPPSC,7,HPSC,11,HPSSB,1,HPSSC,1,HRTC,3,HSSC,10,Human Resource,2,Hyderabad,14,IBPS,6,ICAR,2,ICMR,3,ICSI,8,ICWA,45,IDPL,1,IGNOU,1,IIA Bengaluru,2,IIM,6,IIM Kozhikode,1,IISER,12,IIT,13,IIT Bombay,23,IIT Guwahati,2,IIT Kharagpur,4,IIT Mandi,5,Implementation of 7th CPC,11,India Post,9,indian Air Force,12,Indian Army,48,INDIAN COST GUARD,3,Indian Economic Service,11,indian forest service,19,Indian Navy,28,Indian Ordnance Factories,13,Indian Statistical Service,11,Indra Gandhi National University,1,Inspector,38,Institute,1,Instructor,8,Intelligence Bureau,5,Intermediate,457,International Jobs,5,Interview,26,Investigator,3,IOC Limited,17,IRCON,1,IREDA,1,ISRO,7,IT,14,ITBP,14,ITDC,1,ITI,120,ITI LIMITED,2,J & K,7,Jammu & Kashmir,18,JCM,2,Jharkhand,48,JKPSC,3,JKSSB,3,JNU,1,Job News,137,Journalist,1,JPSC,6,Jr. Officer,3,JRF,4,JSLPS,2,JSSC,9,JTO,1,Judge,7,Judicial Service Examination,3,July,7,Junior Assistant,17,Junior Engineer,40,Junior Overman,3,Junior Research Fellow,18,Junior Resident,8,Junior Superintendent,2,Junior Technician,2,junior telecom officer,2,Kandla Port Trust,2,Karnataka,71,Kerala,36,Kerala PSC,2,Kochi,3,Kolkata,16,Kolkata Police Recruitment Board,1,Kolkata Port Trust,4,KPCS,4,KPSC,10,KRCL,1,KSINC,1,KVB,1,KVS,2,Lab Assistant,28,Laboratory Assistant,11,Labrary Science,1,Lady Constable,1,Law,53,LAWYER,5,LDC,132,Lecturer,15,Legal,5,Legislative Assembly Secretariat,1,Librarian,13,Library Assistant,4,LIC,3,Life Sciences,1,LLB,21,Lok Sabha,2,Ltd. Company,158,Lucknow,2,Lucknow Metro Rail Corporation Limited,2,m,1,M A,3,M Ed,32,M Phil,17,M Tech,1,M. Com,94,M.A,77,M.Com,19,M.SC.,214,M.Tech,245,MA,15,Madhya Pradesh,61,Maharashtra,139,Mali,3,Management Trainee,14,Manager,147,Manipur,8,Marketing Executive,6,Master Degree,32,Matric,360,Matron,1,MBA,106,MBBS,140,MCA,66,MD,72,MDNL,1,ME,136,Mechaniical,48,Medical,14,Medical Officer,67,Medical Professional,1,Medical Superintendent,4,Meghalaya,11,MES,2,Metro Rail,14,MIDHANI Crane Operator,1,minimum wages,2,Mining Sirdar,8,Ministry of Defence,9,Mizoram,4,MMRCL,1,Model Question,1,Motor Vehicle Inspector,2,MPCDF,1,MPPKVVCL,3,MPPSC,8,MPSC,10,MS,28,mtnl,3,mts,57,Mumbai Port Trust,4,Mysore,1,Nagaland,2,NALCO,2,National Defence Academy,21,NBAGR,2,NCBB,1,NCC,1,NCERT,7,NCLAS,1,NCPIL,1,NDM,1,NDMA,1,NDMC,1,NEIAH,1,NET,27,New Delhi,18,NFC,2,NHAI,2,NHB,1,NHM,15,NIELIT,1,NIFT,2,NIPER,3,NIRM,1,NISG,1,NIT,9,NJA,1,Notice,7,NPCIL,3,NPSC,1,NTPC Limited,5,NTRO,1,NTSE,1,Nurse,62,Nursing,17,Nutrition Counselor,1,Odisha,70,Odisha Gramaya Bank,1,Odisha Police,1,Office Assistant,29,Office Superintendent,2,officer,203,ONGC,4,Operator,13,OPSC,7,Ordnance Depot,3,Oriental Bank,2,OSSC,10,OSSSC,3,OT Technicians,1,Overseer,5,Para-Military,1,Paramedical Staff,8,Pathology,2,Patwari,6,PEC LTD,1,Pension,1,Pension Revision,1,Peon,45,PFC Consulting Ltd,1,PG Degree,261,PGDCA,4,PGDCA/ DOEACC,5,PGIMER,3,PGIMS,2,PGVCL,3,Ph D,52,Pharmacist,23,Phycial Research Laboratory,1,Pilots,3,Plumber,6,Police,80,Polytechnic,1,Port Trust,1,Post Graduate,43,Postman,11,PPSC,8,Prasar Bharti,1,Private Jobs,26,Private Secretary,2,Probationary Officer,9,Probationary Officers,10,Professor,65,Programme Assistana,1,Programme Officer,2,Programmer,12,Project Assistant,14,Project Engineer,5,Project Fellow,9,Project Officer,7,PSSSB,1,PSTCL,1,Psychology,1,puducherry,3,Punjab,46,Railway,64,Rajasthan,48,Rajya Sabha,2,Rally Program,1,RBI,5,Registrar,14,Rehabilitation Worker-NCD,1,Relationship Executive,1,Research Associates,12,Research Officer,6,Result,44,Review Officer,2,RGCB,1,Rishikesh,4,RITES Ltd.,11,RPCS,1,RPF,8,RPSC,4,RSMSSB,3,Rssc,1,Sahyog Agricultural,1,SAIL,3,Sales Tax Inspector,1,SBI,11,Sc,1,Schedule,1,Scholarships,1,School Jobs,1,SCI,1,Scientific Assistana,1,Scientific Assistant,5,Scientific Officer,11,scientist,55,Secretary,9,Section Officer,13,Security,24,Senior Resident,13,SERIES 2,1,SERISE 1,1,SET,1,Seventh Pay Commission,13,Seventh Pay Commission Report,1,SGM Hospital,1,SIDBI,1,Sikkim,1,SLET,1,Social Worker,8,Specialist Officer,7,SPSC,1,SRF,4,SSA,1,SSB,23,SSC,73,Staff,55,State Consultana,2,State Govt,29,State Programme Officer,2,State Resource Person,1,Stenographer,83,Store Keeper,22,Store Officer,5,Store Superintendent,2,Strike,3,Superintendent,10,Superintendent Engineer,1,Supervisor,18,Surgical Specialist,1,Surveyor,8,SVNIRTAR,1,Sweeper,29,Syllabus,22,Tamil Nadu,62,Teaching Job,76,Technical Assistant,52,Technical Attendant,5,Technical Officer,23,technician,76,Telangana,26,Telephone Operator,1,Territorial Army,1,time table,3,TISS,3,TMC,2,TNPL,5,TNPSC,15,TPSC,5,Tradesman,23,Trainee Officer,6,Translator,3,Trending Now,4,Tripura,9,TSPSC,5,TTA,1,Typist,2,UDC,34,UG,1,UIIC,1,UKPSC,5,UKSSSC,6,University,28,University Jobs,29,UPCL,4,UPPCL,2,UPPSC,9,UPSC,141,UPSSSC,19,Uttar Pradesh,113,Uttarakhand,42,Veterinary Surgeon,5,WBPSC,12,WBSSC,5,Weaver,1,West Bengal,92,
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News@Jobs:Latest Govt, Bank, State Jobs Alert: New income declaration scheme explained - Demonetisation News
New income declaration scheme explained - Demonetisation News
New income declaration scheme explained - Demonetisation News Govt has proposed a total tax, penalty and surcharge of 50% on amount deposited since demonetisation
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