If not, it automatically becomes the law.As per the government proposal, those who have disclosed and deposited money after demonetisation will have to forego 50% of the amount, a part of which will go into a special fund being created for welfare measures for the poor. The fine will go up to 95.4% for those whose declared income exceeds Rs 1 crore. Those below this threshold will be marginally better off and will be required to pay up to 90.9%. This is with regard to undisclosed income that comes to the notice of official agencies.The fines may also help the government offset any shortfall in the estimate of "indirect gain" it hopes to make in case a chunk of the discarded currency does not come back at all. The assumption here is that the higher the disappearance, the lower the liability of RBI to the holders of the scrapped currency notes: a scenario which can help the central bank to pass on the gain of the lower liability to the government in the form of higher or "special" dividend.

Source: Economic Times November 29, 2016 09:57 UTC