- What: The Centre introduced a Bill in the Lok Sabha that gives tax defaulters an opportunity to come clean by paying tax and penalties
- Key feature of the proposed amendment to the Income-Tax Act is a proposal to impose 50% tax on undeclared income that is voluntarily disclosed till Dec 30
- After that 82.5% (75% tax and 10% of such tax as penalty) could be levied on undeclared income detected by authorities
- The tax changes are intended to supplement the demonetisation move targeted at curbing black money
- The proceeds will be made a part of the Pradhan Mantri Garib Kalyan Yojana
- They will be used to fund schemes for providing irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood
This development indicates a sustained effort on the part of the govt against black money. Make notes of such developments, it helps to enrich mains answers. Also note the Pradhan Mantri Garib Kalyan Yojana.