LS passes bill to tax money deposited after demonetisation

NEW DELHI: The Lok Sabha on Tuesday passed the Taxation Laws (2nd Amendment) bill — which provides for a 50% tax slab on people depositing unaccounted money in banks — amidst disorderly scenes in the house and without the legislation being debated.

Amid protests from Opposition members that their democratic rights to move amendments to the bill had been stymied, finance minister Arun Jaitley moved the bill, saying this had become necessary as it had come to the government’s notice that some people were illegally trying to exchange the banned ₹1000 and ₹500 notes.

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

“The legislation — which amends the IT Act — will provide the means to the Government of India to run schemes like Garib Kalyan Kosh”, finance minister Jaitley added.

The Opposition termed the passage of the bill as a “black day”, accusing the government of being “undemocratic and dictatorial” and hinted at the possibility of approaching the President on the issue.

Congress leader Mallikarjun Kharge said, “We want that Income Tax Amendment Act should come through the rules. The amendments proposed by the Opposition MPS and leaders should also be kept in mind”.