Govt to Pass Ordinance, Rs.50,000 Penalty for Those Having Old Notes

December 27, 2016 10:52
Govt to Pass Ordinance, Rs.50,000 Penalty for Those Having Old Notes

Prime Minister Narendra Modi had banned Rs.500 and Rs.1000 notes last month in order to curb black money. But still, many people are carrying huge denominations of old notes with them.

The government is now likely to come up with an ordinance which will penalize anyone caught having old Rs 1,000 and Rs 500 notes worth more than Rs 10,000 after December 30. The government also announced that Dec 30 is the last date to deposit old notes in the bank.

Sources said "the ordinance is likely to be finalised before December 30. They added that the government is working out the penalty on the same which could go up to Rs 50,000 or more.'

The main aim of this ordinance is to ensure that people stick to the deadline and deposit demonetised notes in a bank.

According to theĀ  Garib Kalyan Yojana, people have time until March 31, 2017, to reveal all their illegal wealth. They have to also pay 50 percent tax and also have to lock in another 25 per cent of the declared income for four years.

This amount is intended to be used for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood.

The scheme is a part of the Taxation Laws (Second Amendment) Bill, 2016, which was passed by Parliament on November 29 to amend the income tax laws to give stiffer penal tax.

However, no one will be spared for criminal acts like Prevention of Money Laundering Act, Narcotics Act or for holding 'Benami' (by proxy) properties and smuggling crimes.

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BY M. DIVYA SRI

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