After demonetisation of currency 500 and 1000, the central government is going to launch another scheme for the conversion of Black money into white. According to this scheme, if you have any unexplained income, then you will get another chance for depositing this income into banks from next week.
According to this scheme a minimum of 50% tax may be imposed on unexplained income deposits made using the banned old currency of rupees 500 and 1000 notes up to the end of December. But the Government will lock 25% amount from your remaining 50% amount for next four years, you will not use this amount for next four years. However, a 60% tax and penalty could be levied if anyone declining this scheme. In the leadership of Mr. Prime Minister a cabinet meeting was held at the PMO office on Thursday night and they discussed in this proposal. According to this scheme if anyone is not sharing the unexplained income, then a higher 90% tax and penalty could be imposed. Next week the Central government can make an amendment in Tax act by adding a clause in one of the sections to provide for the tax on an unexplained income, sources added.
Sources said the demonetisation is a very big step towards the black money, Now the government is trying to make it successful and considering this step as a war against black money. Last days government had given a chance for conversion of black money with 45% tax pay without any question or explanation, but the results were not that much good as the government was expecting.
But now this is the last time for the black money holder, they got another fair chance to convert their black money into white. Let’s see how much more effective this step is towards black money and how much benefit for the honest tax payers, but it will definitely a good step for recovery of black money. In the last speech of Mr. Narendra Modi at Punjab, he thanks all the citizens of India. He addressed that he knows that all the people of India are facing lot of problems with this demonetisation but still supporting his decision to uproot black money.