Income Tax Law Changes Will Make It Easier To Carry Out ‘Raids’; Govt Gives One Last Chance For Black Money Hoarders
Section 132 of Income Tax Act is concerned with raids conducted by Income Tax officials on those businesses and individuals who are being suspected of hiding unaccounted money, often called black money.
As per reports coming in, Govt. is all set to implement some major amendments in this particular section of IT Law, which will make conducting raids easier, and more transparent.
As per new amendments, simply a ‘reason to believe’ or a ‘reason to suspect’ would be enough to justify a raid on any business or an individual. Besides, a ‘reason to believe’ would be enough to demand access to accounting books and records.
As of now, IT Officials need to justify their decision to carry on a raid, which would now vanish.
Hence, a simple doubt or suspicion would enough to trigger a raid.
One more major change which has been proposed under the amendments of IT Act includes the right of the business or individual to question the basis of the raid or seek information on their intent.
Govt. of India has pledged to increase tax collection to Rs 441,255.27, which is an increase of 24.9% compared to last fiscal year.
Govt.’s Last Chance For Black Money Hoarders
Govt. of India has extended Pradhan Mantri Garib Kalyan Yojana (PMGKY), which is being described as a last chance for black money hoarders to declare their unaccounted wealth, and come under the tax regime.
A statement by the Finance Ministry said, “The Government has decided to allow declarants to make deposits on one or more occasions in the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016,”
Only valid till March 31, businesses and citizens can use PMGKY to become clean by paying 50% tax on bank deposits of old currencies made after November 8th. However, there is a rider: The declarants have to mandatorily park a quarter of the total sum declared in a no-interest deposit scheme for 4 years.
There is another condition: Taxes needs to be paid upfront, and then the tax receipt can be used for availing the offers.
Pradhan Mantri Garib Kalyan Deposit Scheme was initiated on December 17th, and was provisioned under The Taxation Laws (Second Amendment) Act, 2016 which was urgently passed by the Parliament after demonetization kicked in.
