As per the amendments, the declarant has to pay tax at 30 percent of undisclosed income and a penalty at 10 percent.
According to a CNBC-TV18 report, declarant will have to deposit 25 percent of undisclosed income.
The surcharge, which will be at 33 percent, has been named Pradhan Mantri Garib Kalyan Cess.
The amount will be utilised for housing, irrigation, toilets, primary health, infra & education schemes.
The Revenue Secretary said that the I-T Act is being amended along with Finance Bill Amendments.
He also added that there is no proposal change Section 270A dealing with existing penalty clauses.
Existing Law says unexplained cash to have 30 percent tax and no expense deductible.
In an interview with CNBC-TV-18, Dinesh Kanabar, CEO of Dhruva Advisors, said the amendments to the Income Tax act is probably like IDS part II.
He said it is a smart move and very attractive for the people.
He further said that surcharge is levied on quantum of tax. So, there will be 30 percent tax on undisclosed income, on that 10 percent penalty. This rounds up to 40 percent and the surcharge will be levied on the 40 percent which comes to around 53 percent. This is slightly higher than 45 percent under IDS.
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