Lok Sabha passes Bill to tax money deposited post demonetisation

New Delhi: Amid a din, a bill which seeks to tax money deposited in banks post demonetisation was passed in the Lok Sabha yesterday within minutes without any debate.

Amid fierce slogan shouting by the opposition, Finance Minister Arun Jaitley said the Taxation Laws (2nd Amendment) Bill, 2016 was brought after it came to the government's notice that some people were trying to illegally exchange the demonetised Rs 1000 and Rs 500 currency notes.

He said as per the amendment proposed, those caught illegally converting money will have to cough up 60 per cent tax plus penalties, which will come to 85 per cent.

When opposition members questioned bringing the bill for consideration and passage yesterday at a short notice, Jaitley and Information and Broadcasting Minister M Venkaiah Naidu said they were casting aspersions at the Chair.

Members rushed to the Well and kept shouting slogans till the bill was passed. Opposition parties accused the government of being “undemocratic and dictatorial” and hinted at approaching the President on the issue.