The Taxation Laws (Second Amendment) Bill, which is

The Taxation Laws (Second Amendment) Bill, which is

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PRI COM ECO GEN NAT
.NEWDELH DEL85
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The Taxation Laws (Second Amendment) Bill, which is
currently under consideration of the Rajya Sabha, will 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.
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.
CBDT said: “Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources.
“The provisions of section 115BBE apply mainly in those cases where assets or cash etc. are sought to be declared as ‘unexplained cash or asset’ or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such.”
The Bill also proposes to raise penalty under I-T Act for search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently.
Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent.
While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in “any other cases”. That would raise the incidence of tax and penalty to 90 per cent. PTI JD CS SA
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