Govt's 'second chance' to black money holders: 5 things to know

New Delhi: After much opposition and resentment from the black money holders, common man and opposition; the Government has decided to give people another chance of converting their black money into white money. According to a proposal passed by the cabinet, the new rule is like a ‘second chance’ for black money holders to avoid prison.

• On declaring the black money, one will now have to give only 50% of the amount as tax. The rest 50% can be transferred to one’s account

 

• Of the 50% amount that one would hold into their accounts, only 25% can be used for a period of 4 years. The rest 25% cannot be touched or withdrawn

 

• Also, one won’t get any sort of interest on the 25% which the account holder cannot touch for 4 years

 

• In case one fails to declare the black money, he/ she may have to end up in jail and give a hefty amount as penalty

 

• To put forth in simple words, if a person processes an amount of Rs 1 crore as black money, and the person declares that amount in front of the government, then the person will have to give away an amount of Rs 50 lakh as tax and keep the rest Rs 50 lakh with him/her. Of the 50 lakh one holds in the account, Rs 25 Lakh cannot be touched for a period of 4 years and one won’t get any interest on that amount