Taxation Law Second Amendment Bill 2016​ Passed In Lok Sabha

taxation-law-second-amendment-bill-2016Current Affairs: The Lok Sabha on 29th November 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.
Highlights
  • The Bill will enable the government to implement schemes like the Garib Kalyan Kosh.
  • The new Taxation Laws (2nd Amendment) Bill 2016,  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.
  • 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.

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