Finance Bill-2021 passed with opportunity to invest black money in capital market

The Finance Bill-2021 has been passed with the special opportunity to launder black money for one more year by imposing high tax rates. At the same time, those who will make new investments have been given an opportunity to whiten their undisclosed income with 10 percent tax.

The bill was passed by a vote of lawmakers in the lower house on Tuesday (June 29).

In the budget for the current fiscal year 2020-21, the opportunity to launder black money was given on the condition of paying 10 percent tax. The obligation to invest this money was in certain sectors including stock market, bank deposits, savings certificates, land, flats.

No government agency can question how the money laundered in this way has been earned.

Despite being given the opportunity to launder black money with only 10 per cent tax, the taxpayers pay a maximum of 25 per cent tax on the displayed income. There has been a lot of criticism about this inside and outside the parliament in the last one month.

The finance minister has extended this opportunity to launder black money till June next year.

However, according to the new conditions, the share market, banks and savings certificates and cash in hand will be taxed at 25 percent. With this, five percent penalty will have to be paid on the total tax.

However, if one invests in an industry, he can take advantage of this opportunity by paying 10 percent tax.

Sunbd/NJ