Highlights of Taxation Laws (Second Amendment) Bill, 2016

Lok Sabha passed Taxation Laws (Second Amendment) Bill, 2016 today (29 NOV 2016). Highlights are:

# Any income assessed u/s 68/69/69A/69/69C/69D (including share capital, unsecured loans, etc) to be taxed u/s 115BBE, to be increased from 30% to 60% plus 25% surcharge i.e. 75%.

# Penalty @ 10% if tax u/s 115BBE not paid within the relevant previous year.

# Penalty in case of search cases (where source declared and other conditions are complied) to be increased from 10% to 30%.

# Penalty in case of search cases (other than above) to be increased from 10% – 30% to 60%.

# Pradhan Mantri Gramin Kalyan Deposit Scheme (PMGKDS) 2016 to be introduced.

# Any amount declared in PMGKDS 2016 not to be included in total income of the declarant.

# Tax to be paid @ 30% plus surcharge @ 33% and penalty @ 10% i.e. a total of 49.9% of the amount to be declared before making the declaration.

# 25% of the undisclosed income to be deposited in PMGKDS 2016 with lock in period of 4 years with Nil interest.

Best Regards…
CA Ajay Singhal