The Taxation Laws (Second Amendment) Bill was passed in the Lok Sabha on Tuesday without any debate amid sloganeering by the opposition parties which demanded that the government first discuss the fallout of partial demonetisation.

Union finance minister Arun Jaitley, while moving the bill for consideration and passage, said the bill is trying to plug the loopholes in the existing acts to ensure that tax evaders are not able to legalize 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,” Jaitley said.

The bill, which was tabled as a money bill in the Lok Sabha on Monday, proposes another income disclosure scheme giving tax payers to declare their undisclosed income but with more stringent penalties and higher tax rates. A part of the proceeds from this scheme are aimed to be used for the welfare of the poor.

The bill also proposes amendments to the Income Tax Act and the Finance Act to plug loopholes which may have provided tax evaders a way to legalize their black money

Since it is a money bill, the amendment will not encounter the challenge of a passage in the Rajya Sabha, where the government is in a minority.

Opposition parties, including the Congress, the Trinamool Congress (TMC), the Biju Janata Dal (BJD), opposed the introduction of the bill. They said that the bill should be taken up at a time when the proceedings of the House were in order.

Saugata Roy, who represents the Trinamool Congress (TMC) in the Lok Sabha, 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 demonetisation takes place. The future of the nation is at stake.”

The TMC has been at the forefront of the agitation against the government’s decision to declare the old Rs500 and Rs1,000 notes as illegal tender.

Ray said that Jaitley surreptitiously introduced the bill in the House when the opposition was protesting against demonetisation in Parliament.

Under the income disclosure scheme proposed by the government, the declarant can declare his undisclosed income, pay a tax of 30% and penalty of 10% on the undisclosed income and a surcharge called ‘Pradhan Mantri Garib Kalyan Cess’ of 33% on the tax, all of which totals up to around 50%.

In addition, the declarant will have to deposit 25% of undisclosed income in a zero-interest deposit scheme that will be called Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

This money will be utilized for developmental activities such as irrigation, housing, construction of toilets and infrastructure, primary education and primary health.

In case the assessee does not declare the illegal income, the government proposes a tax burden of more than 82% and a stringent penalty in cases where such income has been unearthed through a search-and-seizure operation. #casansaar (PTI - LiveMint)