NEW DELHI: Tax experts have reacted positively to the proposed amendments to the Income Tax Act on Monday, terming it as a win-win for all concerned. The majority opinion was that it would give blackmoney holder one more opportunity to come clean.
“The amendments are progressive in nature and puts to rest to the uncertainty on the penalties on the amounts deposited in bank accounts,” KPMG (India) Partner and Head of tax Girish Vanvari said.
According to Parizad Sirwalla, Partner – Tax, KPMG, “undisclosed income for Financial Years (FY) upto 31 March 2017 can be offered to tax and the total tax bill will be approx.
50 per cent (30 per cent tax, surcharge of 33 per cent of tax and penalty of 10 per cent of such income).”, including a provision to mandatorily park 25% of that in zero-interest, four-year-no-withdrawal scheme.
EY India National Tax Leader Sudhir Kapadia said considerable amounts of unaccounted cash and bank deposits will come under this scheme “as the base case outcome of 75% tax would make the risk of later detection much higher”.
Grant Thornton Advisory Director Riaz Thingna felt that “the proposed amendment will lend some level of certainty on this contentious issue and will provide an acceptable route to enable defaulters to introduce unaccounted cash into the productive economy”