Finance Minister Arun Jaitley on Wednesday hit out at Delhi Chief Minister Arvind Kejriwal for making "factually incorrect" statements on the proposed changes in the Income Tax Law. Responding to Kejriwal's charge that the Modi government had slashed penalty on black money from 200 per cent to 10 per cent, Jaitley took to the twitter to explain the features of the amendments passed by the Lok Sabha yesterday.

He asserted that there will still be a penalty of 200% for misreporting income under Section 270A of the Income Tax Act. "Why should a former IRS officer, @ArvindKejriwal factually misrepresent changes in the Taxation Law?" he tweeted. In the newly introduced Pradhan Mantri GKY, apart from 50 per cent of income being taken as tax, penalty and surcharge, 25 per cent of disclosed income has to be kept as interest free deposit for four years, he said.

Jaitley also said that a total of 77% tax will be imposed on cash if an individual shows it in the return, but can explain it. Otherwise, tax on 'unexplained' cash shown on a return has been increased to 60% tax + 25% surcharge tax + 3% cess tax, from the earlier 30% .