Government to allow deposits on one or more occasions in Garib Kalyan scheme
- More than one deposit of undisclosed income can be deposited at the authorized banks.
- The deposit sum should not be less than 25% of declared undisclosed income.
- Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016, started on December 17 and will remain open until March 31, 2017.
- Under the scheme, those who declare cash deposits will be levied a charge of 50%, which breaks down into 30% tax, 33% surcharge and 10% penalty.
The Government of India on Tuesday announced the relaxation of number of deposits in the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016.
“In this connection, the Government of India has decided to allow declarants to make deposits on one or more occasions in the PMGKDS, 2016. Accordingly, para 4(4) of the notification stands amended as under: 4. Subscription and Mode of investment in the Bonds Ledger Account- (4), the deposit to be made under sub-section (1) of Section 199F under this Scheme can be made, on one or more occasions. The deposits shall be made before filing declaration under sub-section (1) of section 199C,” the government said.
In consultation with the Reserve Bank of India (RBI) the government stressed that deposit sum will not by lower that 25% of the declared undisclosed income.
“The deposit under this Scheme shall be made by any person who declared undisclosed income under Pradhan Mantri Garib Kalyan Yojana, 2016. The deposit sum, which shall not be less than twenty-five per cent of the declared undisclosed income, can be deposited at the authorized banks (as notified by Government of India) from December 17, 2016 (Saturday) to March 31, 2017 (Friday),” the government said.
Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016, started on December 17 and will remain open until March 31, 2017.
Under the scheme, those who declare cash deposits will be levied a charge of 50%, which breaks down into 30% tax, 33% surcharge and 10% penalty. In addition to this, 25% of the amount declared will go into the noninterest-bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years.
Declarations under PMGKY will be confidential and those taking advantage of it will escape prosecution.
Those who don’t take advantage of the scheme and are caught later will face up to 85% penalty, besides prosecution. Not declaring undisclosed cash or deposits in banks under the scheme now but showing it as income in the tax return form would attract a total of 77.25% in taxes and penalty.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.