Stash will be taxed at 45%, says Centre

The government on Thursday clarified that the total tax and penalty under amnesty scheme on domestic black money will be 45 per cent after some reports suggested that the effective tax rate under the scheme will be 31 per cent.

Centre also allowed payment of tax and penalty in installments over an extended period for the black money disclosed under the one- time compliance scheme, the government had earlier provided two month’s time after the close of declaration window on September 30 this year for payment of dues.

Now, the government has allowed payment of dues in three installments by September 30, 2017. The first installment of 25 per cent of the total tax, surcharge and penalty due will have to be paid

The government has extended the deadline for payment of tax and penalty under the black money disclosure scheme and allowed declarants to pay the amount in three installments by September 30 next year. by November 30, 2016, followed by a second tranche of an equivalent amount by March 31, 2017. The remaining 50 per cent will have to be paid by September 30, 2017.

“In respect of IDS, based on our Q& A an impression was created that the effective rate of IDS would now be 31 per cent .... It is clarified that effective rate of tax plus penalty plus cess remains at 45 per cent,” said revenue secretary Hasmukh Adhia.