Amid disruptions & uproar, Bill to tax deposits passed in Lok Sabha

As per the amendment proposed, people who disclose black money to banks will have to pay 50 per cent tax, including surcharge and penalty. File photo  

In the midst of disruptions and adjournments, the Lok Sabha on Tuesday passed a Bill that seeks to tax money deposited in bank accounts post demonetisation.

The Taxation Laws (2nd Amendment) Bill 2016 was passed in the lower House of Parliament without any debate, provoking strong protests from Opposition leaders.

“I urge the House to accept the amendments,” Finance Minister Arun Jaitley said while moving the Bill for passing, adding that the Bill will enable the government to implement schemes like the Garib Kalyan Kosh.

Finance Minister Arun Jaitley speaks in the Lok Sabha in New Delhi on Tuesday.

Finance Minister Arun Jaitley speaks in the Lok Sabha in New Delhi on Tuesday.   | Photo Credit: PTI


The new Taxation Laws (2nd Amendment) Bill 2016, passed sans debate in the Lok Sabha on Tuesday, will entail a tax of 30 per cent of the income declared, an additional surcharge of 33 per cent of the tax amount, and a penalty of 10 per cent of the declared income. This adds up to a total liability of about 50 per cent. In addition, the amendment states that 25 per cent of the declared income is to be deposited in an interest-free deposit scheme with a lock-in of four years.

If undeclared, then the unexplained amount will face a flat tax of 60 per cent, a surcharge of 25 per cent of the tax amount, and a possible 10 per cent penalty at the discretion of the assessing officer. This takes the total levy on undeclared income or assets to as much as 85 per cent.

Only two amendments — by N.K. Premchandran of the Revolutionary Socialist Party and B. Mahtab of the Biju Janata Dal — were allowed. However, while Mr Premchandran refused to move the amendment as he was shouting slogans, Mr Mahtab’s amendment was negated by a voice vote.

Amid protests by several Opposition members, the Lok Sabha was adjourned four times on Tuesday.

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Printable version | Nov 29, 2021 11:16:38 AM |

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