28 February, 2021

Bait In Black And White

Up for grabs is another offer for cash hoarders to change the colour of their money

Cash Woes
A bank staff carries wads of old currencies
Photograph by AP
Bait In Black And White

“Nothing will get you nothing: try again,” the famous words from King Lear appears to be Prime Minister Narendra Modi’s motto in his zeal to keep his election promise of tackling black money. Unfazed by the scathing criticism of many a noted economist against demonetisation, Modi is preparing to open another window to weed out black money from the economy by proposing the third amn­esty scheme in less than three years.

The latest voluntary income disclosure scheme (IDS) under the Taxation Laws (Second Amendment) Act, passed in Lok Sabha on Tuesday, has tougher provisions than the previous one, which closed on September 30, and had levied 45 per cent tax-plus-penalty. To be implemented after getting the presidential nod, the new scheme proposes nearly 50 per cent levy (including tax, surcharge and penalty) on any untaxed income disclosed. In addition, 25 per cent of black money declared by an individual is to be parked interest-free in ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’ for four years.

The interest-free money...

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