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Bill to tax black money deposited in banks passed in Parliament

Lok Sabha today passed, within minutes and without any discussion, a bill that seeks to tax money deposited in banks post demonetisation, marking the first legislative business during the two-week-old Winter Session which has been paralysed by the opposition.

The Taxation Laws (2nd Amendment) Bill, 2016, was passed by the lower House after eight days of total washout. The Rajya Sabha, however, again failed to transact any business because of pandemonium of demonetisation.

Even as Opposition members indulged in fierce slogan shouting, Finance Minister Arun Jaitley said the bill will give means to the Government of India to run schemes like Garib Kalyan Kosh. “I urge the House to accept the amendments,” he said while moving the bill for consideration and passing.

He said the bill was brought after it came to the government’s notice that some people were trying to illegally exchange the demonetised Rs 1000 and Rs 500 currency notes.

Jaitley said as per the amendment proposed, those caught illegally converting money will have to cough up 60 peer cent tax plus penalties, which will come to 85 per cent.

Those who disclose black money to banks will have to pay 50 per cent tax, including surcharge and penalty. While they will get back 25 per cent immediately, the rest 25 per cent will be returned after 4 years.

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