<!– /11440465/Dna_Article_Middle_300x250_BTF –>Amidst pandemonium, the Lok Sabha on Tuesday passed a major taxation bill to amend the Income Tax Act without a debate to facilitate levy of 60 per cent tax on undisclosed income or investment or cash credit deposited in banks after the November 8 demonetization. Speaker Sumitra Mahajan rejected amendments submitted by Kerala’s Revolutionary Socialist Party’s lone MP N K Premchandran. The bill gives the depositors a choice to admit voluntarily the black money so deposited and pay 50 per cent as tax and penalty or lose 85 per cent of the unexplained cash not admitted. Those volunteering will be able to use only 25 per cent of the money while putting the rest 25 per cent locked up for four year in the new Pradhan Mantri Garib Kalyan (PMGK) scheme.Introducing the bill, Finance Minister Arun Jaitley also emphasized that the government will stick to the deadline for depositing the high-value notes that were banned earlier this month. The old notes must be submitted to bank branches before they close on December 30.The legislation was brought before the Lok Sabha as a money bill, it will not have to pass the test of the Rajya Sabha, where the government is in minority. It will now go to the Rajya Sabha for debate and consideration, before heading to the President for his stamp. The Rajya Sabha cannot amend a money bill but it can make non-binding recommendations to the Lok Sabha. Jaitley, asserted that it will plug the loopholes in the existing laws to ensure that tax evaders are not able to legalise their black money. “The aim is to ensure this money comes into the mainstream. The rich’s black money will be used for the welfare of the poor,” he declared.Throughout proceedings, the Opposition benches were up in arms, protesting the introduction of the important bill. They called it another scam of the government’s compromise to leave half of the black money with the crooks, who won’t mind sharing half of their ill-gotten wealth with the government. An MP shouted that a culprit selling property in Rs 40 lakhs by cheque and another Rs 20 lakh in cash won’t mind losing Rs 10 lakh and pocket another Rs 10 lakh as black money. The NDA ally Telugu Desam Party (TDP) MP Dr Sivaprasad, who was dressed in black, said people with black money are laughing at this act and the common man is weeping.The Speaker rejected the demand that the bill should be taken up at a time when the proceedings of the House were in order. The House was adjourned thrice during the pre-lunch session because of the Opposition demand to first debate on the demonetization in the presence of the PM. However, the Speaker went ahead with the bill despite the noisy scenes, citing it urgency because of which it cannot be postponed. Saugata Roy of Trinamool Congress said, “It is necessary that the House be in perfect order when such a key bill is discussed and that cannot be done until the discussion on demonetization takes place.”

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LS passes major tax bill without debate