The Income Tax Department has taken a huge step after the financial year-end. As PMGKY was close after 31 March 2017, the department took a ride to find hidden black money.
According to the news, the department had raided and surveyed entry-operators, masked companies, government officers, real estate players and other gray practitioners of different domains. Within fifteen days of the financial year – end, income tax department found concealment of rupees 540 crores.
31st march is known for the financial year ending date. With the PM Narendra Modi’s scheme of PMGKY and action to disclose undeclared funds up to 31st March 2017, Income Tax Department took action against junk companies for their illegal business and malpractices of converting black money into white. The authority had warned public to disclose their black funds in Pradhan Mantri Garib Kalyan Yojna(PMGKY) scheme and otherwise surcharges would be paid. Around 250 raids and surveys took place within two weeks. They had found 300 masked companies under black money business of 540 crores rupees.
The income tax department had recently made changes in the Income Tax Act and are in effect from 1st April 2017. Changes had made after considering irregularities in paying tax. The change states that the account of payer coming under Tax 5 might be opened in near future. According to transformed plain, Income Tax Department assures full privacy in revelations and protection from other anonymous laws. It is compulsory for payers to pay 25% of undisclosed money. The amount will be interest free and used only after 4 years of lock-in period.
The department has already had all information regarding our accounts and deposits. One can disclose his/her undeclared funds, otherwise suitable action will be taken.