Finance Minister Arun Jaitley on Wednesday took Delhi chief minister Arvind Kejriwal to task for “factually misrepresenting changes in the tax law” and asserted that there will still be a penalty of 200% for misreporting income under Section 270A of the Income Tax Act.
Jaitley made this clarification on Twitter, a day after Kejriwal asked why the penalty on declaration of black money “had been reduced from 200% to 10%.”
Factually incorrect statements have been made by @ArvindKejriwal in relation to changes proposed in the Taxation Law. (1/3)
— Arun Jaitley (@arunjaitley) November 30, 2016
What is Section 270A? It is the “Penalty for under reporting and misreporting of income”. Under that says, among other things, that any person who has under-reported his income shall be liable to pay a penalty in addition to tax, if any, on the under-reported income.
Jaitley also said that a total of 77% tax will be imposed on cash if an individual shows it in the return, but can explain it. Otherwise, tax on ‘unexplained’ cash shown on a return has been increased to 60% tax + 25% surcharge tax + 3% cess tax, from the earlier 30% .
In addition, penalty for search and seizure has increased to 30% from the current 10-20% — and this even if an individual “admits it and shows it” in their return. If they don’t show it on their return they will be charge s whopping 60% of income as penalty, Jaitley said. Pradhan Mantri Garib Kalyan Yojana (PMGKY), as per the amendment passed in the Lok Sabha yesterday, those who made and disclosed bank deposits of unaccounted money – since the currency ban on November 8 – will have to forego 50% of the amount, a part of which will go into a special fund being created for welfare measures for the poor.
In addition, the depositor in the above case will be able to access only 25% of the amount as the government has decided to keep the rest locked in for four years as interest-free deposits for the PMGKY.
— Arun Jaitley (@arunjaitley) November 30, 2016
Yesterday, Kejriwal tweeted a series of comments against demonetisation.
“First the government said it will impose a 200% penalty. After 20 days, it’s saying it will impose a 10% penalty. Have those with black money made the OM bend to their will and reduce the penalty?” he tweeted.
अभी तक बैंकों में 8 लाख करोड़ जमा। इसमें एक पैसा काला धन नहीं। नोटबंदी फ़ेल। मोदीजी को काला धन वालों की पेनल्टी 200% से घटाकर 10% करनी पड़ी
— Arvind Kejriwal (@ArvindKejriwal) November 29, 2016
अभी तक बैंकों में 8 लाख करोड़ जमा। इसमें एक पैसा काला धन नहीं। नोटबंदी फ़ेल। मोदीजी को काला धन वालों की पेनल्टी 200% से घटाकर 10% करनी पड़ी
— Arvind Kejriwal (@ArvindKejriwal) November 29, 2016
