VIJAYAWADA: For the past few days, chartered accountants are being flooded with calls from clients for detailed information on the provisions of the amended Income Tax Act and their implications, particularly clauses relating to the disclosure of unaccounted money.
The provisions of the amendments are more in the nature of voluntary income disclosure scheme, which the centre had introduced recently to flush out black money.
With the new amendments of Income Tax set to come into force soon, those who have loads of money are clearly worried and are trying to figure out what they should do now.
Several CAs opined that Taxation Law (Second Amendment) Bill is nothing but an extension of Income Declaration Scheme (IDS)-2016, which explicitly covered immunity but the recent amendments to the act do not provide that facility.
Speaking to Express, chartered accountant Gaddam Satyanarayana said that the top most concern of the individuals was whether depositing unaccounted money in their bank accounts could also lead to the income tax department reopening previous years returns. According to the proposal, the government will also notify forms that individuals will need to fill up and submit when declaring unaccounted money. These forms will be available once the Act is notified.
Speaking on the provisions in the Bill, Satyanarayana said that there was no limit on the amount to be deposited by the assessee as he/she pays a tax of 30 per cent, a penalty of 10 per cent on the undisclosed income and a surcharge called Pradhan Mantri Garib Kalyan Cess of 33 per cent on the tax. The money collected from the assessee will be utilised for developmental activities such as irrigation, housing, construction of toilets and infrastructure, primary education and primary health, he said.
P Shankar, another CA, said that a majority of the clients were in a hurry to know about the provisions in the new amendment and none of them approached him with the income declaration form.
Earlier, the Centre had also announced Income Declaration Scheme (IDS)-2016 in April, this year where the client undisclosed income, pay a tax of 45 per cent, in which 30 per cent is maximum marginal rate. The amendment to the Act is to provide black money hoarder an additional opportunity to come clean.