Modi government is trying to soften their rules to bring black money back. According to officials, it is an opportunity to make you hidden assets and fund come clean as they have to now pay effective tax around 31% against 45% of the black money. It simply depicts that the government will not ask the income source on veiled incomes.
It is the move by Indian government to boost Indians to bring back their hidden assets. To illustrate the scheme, here is an example. If you have undisclosed assets of worth INR 100 Crore, the tax will be INR 45 Crore while the remaining amount of INR 55 Crore will be deemed as legitimate income. Moreover, if government does not ask the income source from which tax is paid then the undeclared income would be INR 145 Crore. Hence, the effective tax will be brought down to 31%. However, the officials said that the number of takers of scheme will increase if tax blow is more softened.