Good news for those people who have got black money and thinking to convert to white but are unable to do so. There are people who are still afraid because they have got cash which will be of no use after few days but the Central Government has given them one more chance by allowing them to submit their black money to the Government and they will be able to save 50% of it otherwise if caught by the Government agencies then they will have to pay tax of 85%.
So people who have black money with it is a golden chance to submit it to the Government and pay 50% tax on it and the Government will give back 25% now and 25% after 4 years later. On more important is that 25% amount will be paid after 4 years and the person will not get any interest on this 25%.
This is the best time to save 50% of the black money otherwise if caught then tax rate is 85% and other legal complications may also occur. Those who hold black money it is a great opportunity to legalise their wealth till 30th December.
If a person is caught by the authorities after 30th December then straight 85% will deducted on the undisclosed money and wealth.
This is the second amendment in the taxation law which has been introduced in the Lok Sabha by Arun Jaitley after the demonetisation decision of Prime Minister Narendra Modi.
Arun Jaitely has also cleared that this amendment will provide immunity from being questioned on the source of funds and would also ensure immunity from wealth tax, civil laws but there is no immunity from PMLA, FEMA, Narcotics and Black money Act. He also confirmed that the 25% of the black money which will be kept for 4 years will not earn any interest and cannot be withdrawn in any case and it will be used for the welfare of poor.