Unaccounted deposits to attract 50% tax, 85% if still not disclosed!

The Modi government now proposes to levy 50% as tax, surcharge and penalty on the disclosure of unaccounted deposits. Apart from the 50% tax, the declarer will also have to deposit 25% of the amount disclosed in the Pradhan Mantri Garib Kalyan Yojana, 2016 for a 4 year locking period and that too without interest. 

Also, those who will not disclose their black money should be ready for paying 60% taxes along with surcharge and penalty, totalling it up to 85% taxes, if caught.

Further, the penalty for search and seizure presently is also proposed to be revised to 30% where it is admitted and paid, 60% in all other cases. Although, the penalty u/s 270A for mis-reporting and under-reporting of income stays unchanged.

Source: http://economictimes.indiatimes.com/news/economy/policy/30-tax-10-penalty-and-33-surcharge-proposed-on-undisclosed-income-under-demonetisation/articleshow/55664876.cms 

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