The Income Tax department is likely to impose 137% penalty on black money holders if money found during raids. However, nearly 110% penalty will be imposed if the black money holders admit the unaccounted money during search operations conducted by the Income Tax officials.
"We are asking people to declare their undisclosed cash deposits in banks, post offices which have not been subject to tax earlier under Pradhan Mantri Garib Kalyan Yojna, 2016 (the scheme)," Principal Chief Commissioner of Income Tax (NWR) Rajendra Kumar said here today.
This scheme which has come into effect on December 17 shall remain open for declarations up to March 31, 2017, he said.
In case, the income is admitted during search and the assessee is able to substantiate the earning, it will attract 60% tax, 30% penalty, 15% surcharge, 3% education cess surcharge - totalling to 107.25%.