Note-Ban: Black money to attract over 137 pc penalty
New Delhi : Black money holders will have to bear taxes and penalties amounting to as high as 137 per cent if they do not admit to or fail to explain the source of undisclosed income after being raided, the income tax department said.
However, the total levy can touch 107.25 per cent if the undisclosed income is admitted during search operations and that income substantiated, the department said in a release, adding the tax dodgers can come clean by paying 50 per cent on bank deposits post demonetisation.
If one fails to admit his unexplained income during the course of search and in case, taxes are not paid and he does not substantiate the manner in which income is earned, then the tax incidence will be 137.25 per cent, the tax department said in a release.
However, if undisclosed income is admitted during search, taxes are paid and return is filed before the specified date declaring this income and assessee substantiates the manner in which income is earned, then the tax rate will be 107.25 per cent, the release added.