CURRENT AFFAIRS

Detailed explanation-1: -Self-declaration of undisclosed income: The Bill proposes to introduce the Pradhan Mantri Garib Kalyan Yojana, 2016. Under the scheme, taxpayers may declare undisclosed income possessed in the form of cash or deposited in banks, post offices or Reserve Bank of India before a notified date.

Detailed explanation-2: -The Taxation Laws (Second Amendment) Act, 2016 has also amended the penalty provisions in respect of search and seizure cases. The existing slab for penalty of 10%, 20% & 60% of income levied under section 271AAB has been rationalised to 30% of income, if the income is admitted and taxes are paid.

Detailed explanation-3: -When it comes to taxes, there are two types of taxes in India-Direct and Indirect tax. The direct tax includes income tax, gift tax, capital gain tax, etc while indirect tax includes value-added tax, service tax, goods and services tax, customs duty, etc.

Detailed explanation-4: -(2) “ annual value", in relation to any property, means its annual value as determined under section 23; (3) 3 Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1 April, 1988 .]

Detailed explanation-5: -Taxes are of two different types; direct tax and indirect tax. Taxes charged on income earned is called direct tax.