Business Mantra News
The Pradhan Mantri Garib Kalyan Yojana (PMGKY) notified along with other provisions of Taxation Laws (Second Amendment) Act, 2016 came into effect from 17 December 2016. It will remain open until March 31, 2017. A voluntary disclosure scheme by Finance Minister Mr. ARUN JAITLY is to change undisclosed amount/currency to disclosed holdings.
It is the last window for the black money holders in India.
Salient features of Scheme:
1) Declaration of Cash and Deposits: The declaration should be made as per the amount one has whether accounted or unaccounted. Declaration under it can be made by any person in respect of undisclosed income/holding in the form of cash or deposits in an account with any Bank or RBI
2) Pay the Tax and Make the Deposit :The person is supposed to pay 30% of the income and apart of that, the person has to pay 33% of the surcharge tax and 10% of penalty on overall income. Besides, declarant must make mandatory deposit of 25% of undisclosed income in the zero-interest Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 with lock-in period of 4 years.
3) Payment and Deposit Proof is necessary for Declaration : After fulfilling the above mentioned condition , it is necessary for the person to file a form and the form should be verified by the person under the rules and laws by the government.
4) Non Declaration of undisclosed Cash or Deposit: Non declaration of accounts under this Scheme will render tax, surcharge 77.25% of such income, if declared in the return of income. In case the same is not shown in the return of income a further penalty @10% of tax shall also be levied followed by prosecution.
Willingness to declare unaccounted income is more important than compulsion.
Declaring unaccounted money is better than wasting of illegal currency after 30th December, 2016. At least 25% shall be available immediately for use and another 25% shall be available after a lock-in period of 4 years.