Under opposition attack over demonetisation, government today sought to turn tables in the Lok Sabha by daring Congress to spell out a single decision it had taken against black money when it was in power for 10 years.
“I today challenge them (Congress) to spell out a single step that they had taken during 10-year of their rule against black money,” Finance Minister Arun Jaitley said while replying to a short discussion on second batch of Supplementary Demand for Grants which was subsequently passed by the House amid din.
Refuting the allegation that government has given additional route to people to convert black money into white by paying 50 per cent tax, Jaitley said the effective liability on them would be about 65 per cent, much higher than 8 per cent under the Voluntary Disclosure of Income Scheme (VDIS) of 1997.
“It is not just 50 per cent. Out of remaining 50 per cent, 25 per cent would be kept by government for four years.
If you calculate interest on that, the effective tax comes out to be 65 per cent,” he said.
As per the amendment to the Income Tax Act which is pending in the Rajya Sabha, the unaccounted income declared by black money holders during the 50-day window ending December 30 would attract tax and penalty of 50 per cent while the remaining 25 per cent of such income would have to be deposited with government for four years.
The Supplementary Demand for Grants and related Bills, which were approved by the lower house, authorise government to increase public expenditure by about Rs 60,000 crore though the additional cash outgo would be only Rs 36,000 crore.