The government has decided to open a one-time, four-month compliance window for domestic black money- holders. This gesture is intended to help them come clean by paying tax and penalty of 45 per cent.
The limited-period compliance window will enable one to declare undisclosed income or income represented in the form of any asset, and clear up past tax transgressions by paying tax at 30 per cent, a surcharge of 7.5 per cent and a penalty of 7.5 per cent. This will add up to 45 per cent of the undisclosed income. The surcharge at 7.5 per cent will be called Krishi Kalyan surcharge, and the money thus raised will be used for agriculture and rural economy.
There will be no scrutiny or enquiry of money declared, either under the Income-Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. The compliance window, named Income Disclosure Scheme, will open on June 1. It will be open till September 20. The scheme provides one the option to pay the amount due within two months of declaration.
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