CA Online

Amended law provides those with unaccounted cash or deposits of cancelled .? 500 and .? 1,000 notes to pay 50% tax; plan to use funds from deposit scheme for pro-poor programmes New Delhi: The Lok Sabha on Tuesday passed the Taxation Laws (second) Amendment Bill, which provides another chance for people with unaccounted cash to come clean. The Taxation Laws (Second Amendment) Bill, 2016 was passed by a voice vote in a complete din without any debate. The amended law provides those with unaccounted cash or deposits of cancelled 500 and 1,000 notes to pay 50% tax and come clean, or else, if caught, face a much harsher penalty and possible prosecution. A quarter of the amount declared will be locked up for four years in interest free deposits, leaving such declarant with only 25% of funds for immediate use. Finance minister Arun Jaitley said the government had made these changes after it was seen that people were trying to launder the demonetised currency. “It was seen after November 8 t

Limited personnel at the income tax department might compel them to focus on big fish than small depositors The tax department will go after 'big fish' in probing deposits made in demonetised Rs 500 and Rs 1,000 notes but also intend to investigate  small deposits, including Jan-Dhan accounts, if the probe into big tax evaders gives clues for irregularities in these accounts.   “If our investigation team cracks down on a person using, say 20 accounts to convert his black money, we will investigate all those accounts involved, irrespective of whether they have Rs 40,000 deposited in Jan-Dhan or Rs 1 lakh in other accounts,” said an official. He added that enquiries are already on in full swing.   However, limited personnel at the income tax department might compel them to focus on big fish than small depositors. Notices might be sent only after January 2018, as tax returns are filed by July and assessments happen after six months, since these accounts would come up for scrutiny

The first instalment of tax payment from those who have availed of the Income Declaration Scheme (IDS) 2016 stood at Rs 3,500 crore as on Monday November 28. This, according to officials, could swell to Rs 7,500 crore by Wednesday November 30, the last date.   The exchequer is expected to get Rs 30,000 crore from declarations worth Rs 65,250 crore under IDS in three instalments. Of this, Rs 15,000 crore would come in the current financial year through two instalments of Rs 7,500 crore each. “People will pay up as IDS is much more lucrative than the new disclosure ... 30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI  

CAs not sure if individuals declaring unaccounted money will get immunity from reassessment as these provisions are not covered in the Bill Chartered accountants (CAs) have been flooded with calls after the government declared another voluntary income disclosure scheme for unaccounted money. The topmost concern of individuals is whether depositing unaccounted money in their bank accounts could also lead to the income tax department opening up previous years’ returns for reassessment. Revenue Secretary Hasmukh Adhia has said that the disclosures will enjoy immunity from wealth tax, civil and other taxation laws, but there will be no immunity from foreign exchange violations, narcotics and black money laws.  30TH NOVEMBER, 2016, THE BUSINESS STANDARD, NEW DELHI