Taxman To Blackmoney Holders: Come Out Clean Or Pay 77% Tax And Penalty

Asking black money holders to come out clean, the income tax department on Thursday warned that failing to declare such monies under the government's tax amnesty scheme could attract 77.25 percent tax levy and penalty along with prosecution.

In newspaper advertisements, the department said "like fingerprints, your black money will lead us to you".

"Non-declaration of such undisclosed income will be liable to tax, surcharge and cess at 77.25 percent, along with penalty, prosecution and enforcement actions," the department said.

The government in December last year had launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) under which people holding unaccounted cash or deposits in bank accounts or post offices can declare them and pay tax and penalty of 49.90 percent.

Also, a quarter of the undisclosed income has to be parked in a four-year non-interest bearing Pradhan Mantri Garib Kalyan Deposit Scheme.

"The income tax department has information about your undisclosed income and assets. Make your full and honest disclosure under Pradhan Mantri Garib Kalyan Yojana by March 31, 2017, to come clean and help the under-privileged," the tax department said in the advertisement.

The department has promised to provide declarants under the scheme full confidentiality and immunity from wealth tax, civil and other taxation laws as well as prosecution for such declarations.

Offering one last window to black money holders post its decision to ban old high-value currency notes, the government had come out with the PMGKY scheme giving them time until March-end to come clean.

The declaration to the principal commissioner or commissioner of income tax can be done electronically under digital signature or in print.

The tax authorities will issue a certificate to the declarant within 30 days from the end of the month in which a valid declaration has been furnished.