Recently the Cabinet has approved the amendment to the IT Act. As per the new law, the tax rate of 60 per cent may be levied on the previously undisclosed deposits. Also the amendment on the tax will be applicable to savings post November 8.
As per a report by CNBC- TV18, the recent announcement of a 200 per cent penalty on high-value deposits ran into trouble. There is no such provision in the Income Tax Act for imposing a 200 per cent penalty if the income has been declared and filed under the IT return norms. This further clarifies that there is no such provision under the act that bars people to make high-value deposits during the demonetisation period as long as the tax is paid for the same.