CBDT issues notifications of the Taxation Laws Act, 2016
New Delhi [India], Dec 16 (ANI): The Taxation Laws (Second Amendment) Act, 2016 has come into force on December 15th, 2016 under the scheme of Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
The scheme shall commence on December 17th, 2016, and shall remain open for declarations up till March 31st, 2017 notifies Central Board of direct Taxation (CBDT).
The rules in this regard have been notified vide Notification No.116 dated December 16th, 2016 and have been placed in public domain.
A separate notification has been issued for Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 by Department of Economic Affairs.
The salient features of the scheme include declaration under the scheme can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity, tax at 30 percent of the undisclosed income, surcharge at 33 percent of tax and penalty at 10 percent of such income is payable besides mandatory deposit of 25 percent of the undisclosed income in Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.
Also, the income declared under the Scheme shall not be included in the total income of the declarant under the Income-tax Act for any assessment year.
The declarations made under the Scheme shall not be admissible as evidence under any Act (eg. Central Excise Act, Wealth-tax Act, Companies Act etc.).
However, no immunity will be available under Criminal Acts mentioned in section 199-O of the Scheme.
Non declaration of undisclosed cash or deposit in accounts under the Scheme will render such undisclosed income liable to tax, surcharge and cess totaling to 77.25 percent of such income, if declared in the return of income.
In case the same is not shown in the return of income a further penalty at 10 percent of tax shall also be levied followed by prosecution. It may be noted that the provisions for levy of penalty for misreporting of income at 200 percent of tax payable under section 270A of the Income-tax Act have not been amended and shall continue to apply with respect to cases falling under the said section.
The Taxation Laws (Second Amendment) Act, 2016 has also amended the penalty provisions in respect of search and seizure cases. The existing slab for penalty of 10 percent, 20 percent and 60 percent of income levied under section 271AAB has been rationalized to 30 percent of income, if the income is admitted and taxes are paid. Otherwise a penalty at 60 percent of income shall be levied. (ANI)