Revenue Secretary Dr Hasmukh Adhia tweeted on 21.03.2017 that In the official amendment to Finance Bill 2017 Govt has proposed that limit of 3 lakhs for cash transaction, beyond which it is illegal, be reduced to 2 lakhs. The penalty for violating this is a fine equivalent to the amount of transaction.
The above move is to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money.
Union government has proposed making Aadhaar mandatory for filing income tax returns and for obtaining Permanent Account Number (PAN) through proposed amendments to the finance bill 2017.
The government on 21.03.2017 proposed making Aadhaar mandatory for filing of income-tax returns as well as for obtaining and retaining the PAN.
According to the amendments, from 1 July 2017, every taxpayer will have to quote Aadhaar while applying for a PAN and while filing income-tax returns. Further, existing PAN holders will have to disclose their Aadhaar numbers to the government by a date that will be specified later. Aadhaar enrolment number while filing ITR could also be accepted. In case of failure to intimate the Aadhaar number, the PAN allotted to the person shall be deemed invalid.
The move is likely to roil activists who say the Aadhaar programme – the enrolment to a national database with biometric information such as fingerprints and iris scans – is meant to be voluntary, as declared by the SC in September last year.
The government’s move to link Aadhaar will help in finding tax evaders who have multiple PANs. Though the income-tax department has been seeding PAN with Aadhaar for the last few years, the pace of the linkage has not been very good.
The finance bill carries an unprecedented 40 amendments, according to PTI, and will also impact other laws such as RBI act and representation of people act. Political parties hit out at the tweaks, saying they were being done as ‘backdoor entry’.
The finance bill 2017 is expected to receive the Lok Sabha’s approval on Wednesday (22.03.2017).
I-T dept rejects declarations of over Rs 2 lakh crore by ‘suspicious’ people:
The government will not take into account two high-value disclosures
under an amnesty scheme for tax dodgers — Rs 2 lakh crore by a Mumbai
family of four and Rs 13,860 crore by an Ahmedabad-based real estate
The Union finance ministry said the declarations were
rejected as these were “suspicious in nature, being filed by persons of
According to the income tax department, the
family’s case was rejected because three of the four PAN numbers were
originally in Ajmer, which were migrated in September 2016 to Mumbai,
the place of declaration.
Likewise, Gujarati realtor Mahesh Shah’s
case looked fudgy too. He had threatened to disclose names of
politicians and businessmen for whom he was allegedly acting as a front.
Shah, who declared unaccounted for income of Rs 13,860 crore before going “missing” and then surfacing on TV on Saturday, faced questions from taxmen through the night before being allowed to leave for a day.
“The 67-year-old is a heart patient,” an officer said.
realtor, whose business interests are mostly in Mumbai, was “missing”
after he defaulted on the first tax instalment of over Rs 1,500 crore on
the amount he had disclosed. He was supposed to pay the instalment by
November 30 as a part of the amnesty, called the income declaration
Shah alleged he was offered a commission to make the
declaration, but the real owners of the money backed out before the
first instalment was to be paid.
In Mumbai’s Bandra, residents of
Jubilee Court, Linking Road, woke up on Sunday to see a media scrum
outside their building. The reason: A family, the Sayeds, in the
building declared an income of Rs 2 lakh crore.
The residents say they have never heard
of the Sayeds living in flat number four as claimed by the official
government release. They claim the flat has been vacant for several
A resident said: “Around a decade ago, Shailesh Hingorani
owned the flat and he used to run a beauty parlour. Before that, RR Vaid
lived there and sold the flat around 15 years ago.”
Like Shah’s, the income tax department rejected the family’s declaration. But in both cases investigations are on.
finance ministry revised the “black money” disclosed under scheme to Rs
67,382 crore, which will fetch a little over Rs 30,000 crore in direct
Proposed Salient Features of New Income Disclosure Scheme for disclosing #black money held as #cash
1. Applicable for undisclosed income in the form of Cash or deposits held in in bank accounts or in Post Office (Section 199C)
2. Income Tax @ 30% of Cash + Surcharge @ 33% of Tax +
Penalty @ 10% of Cash i.e. aggregating to 49.90% of undisclosed income
(cash) (Section 199D & 199E)
3. The declarant shall 'deposit' minimum 25% of Cash in a
Deposit Scheme to be notified by the CG in consultation with RBI.
4. The 'deposit' shall be interest free and shall have a lock-in period of 4 years from the date of deposit [Section 199F(2)]
5. Income Tax + Surcharge + Penalty + Deposit i.e. 74.90%
has to be paid to the treasury before making the declaration and the
proof of payment is to be attached with declaration.(Section 199H)
6. The amount of undisclosed income (cash) shall not be
included in the total income of any assessment year of the declarant.
7. The undisclosed income may have been earned at any time before 01-04-2017.
8. The declaration made under the scheme shall not be
admissible in evidence against the declarant for the purpose of any
proceedings under any act except those mentioned in Section 199O (like
the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful
Activities (Prevention) Act, 1967, the Prevention of Corruption Act,
1988, the Prohibition of Benami Property Transactions Act, 1988 and the
Prevention of Money-Laundering Act, 2002, etc.)
9. If a declaration has been made by misrepresentation or
suppression of facts or without payment of 74.90% of cash as per scheme,
such declaration shall be void and shall be deemed never to have been
made under this Scheme.
10. If a person fails to make declaration as per above
scheme, but file IT Return for AY 2017-18 (i.e. for Financial Year
2016-17) declaring any unexplained income/investment, cash credit, etc.
under section 68, 69, 69A, 69B, 69Cor 69D (say unexplained income) he
shall be liable to pay income tax @60% of such unexplained income. But,
if the same is not included in IT Return, then additional Penalty u/s
271AAC @ 10% of tax payable is leviable.
11. If any person admits of any unexplained income during a
search conducted under section 132, he shall be liable to pay penalty
@30% of unexplained income admitted in addition to tax.
12. If any person refused to admits any unexplained income
during a search conducted under section 132, he shall be liable to pay
penalty @60% of unexplained income in addition to tax.