Amid much uproar over demonetisation debate, Lok Sabha on Tuesday passed a major bill that provides a window to legalise black money post-demonetisation and a tax on that amount, triggering a controversy with the Opposition calling it a black day and accusing it of being undemocratic and dictatorial.
The Taxation Laws (2nd Amendment) Bill, 2016 got passed by Lok Sabha after days of total washout due to paralysis on the demonetisation issue.
Opposition has been protesting and demanding rollback of demonetisation which has led to total washout of the Parliament session. The bill will give means to the Government of India to run schemes like Garib Kalyan Kosh, said Finance Minister Arun Jaitley.
“I urge the House to accept the amendments,” he said while moving the bill for consideration and passing.
Jaitley also added that the bill was brought after it came to the government's notice that some people were trying to illegally exchange the demonetised Rs 1000 and Rs 500 currency notes.
As per the amendment proposed, those caught illegally converting money will have to cough up 60 per cent tax plus penalties, which will come to 85 per cent. While those who disclose black money to banks will have to pay 50 per cent tax.
(With Inputs from PTI)