Pradhan Mantri Garib Kalyan Yojana – Income Disclosure Scheme
Pradhan Mantri Garib Kalyan Yojana (PMGKY) is an amnesty scheme declared on the line of income disclosure scheme, 2016. The scheme is launched by Honorable Pradhan Mantri which will remain in effect from December 16, 2016, to March 31, 2017.
The scheme offers an opportunity to declare undisclosed income in the form of cash and deposits without going through prosecution. It is the last window offered by Government of India to black money holders to declare unaccounted wealth and protect themselves from stringent penalties and punishments. This is the 2nd income disclosure scheme from the present government that provides tax invaders an opportunity to come clean.
Any person can declare undisclosed income in the form of cash or deposits with banks, post office or some other institutions. Those who declare such money will have to pay 30% tax, 33% surcharge on the tax amount and 10% penalty, which amounts to total 50% tax.
Moreover, it is mandatory to invest 25% of the disclosed money in Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 for the lock-in period of 4 years; you won’t be paid any interest on it. The proceeds will be used for the welfare of the poor.
Declarations made under this scheme will be kept confidential and not admissible as evidence under any income tax act. However, it is not immune to Criminal Acts under section 199-O of the Scheme.
If you have shown income in your tax returns which is not declared and undisclosed in PMKGY, you will have to pay fine of 77.25%. If you have undeclared money and not shown in tax return too, and if it comes to notice; you will have to pay 10% more penalty as well as will have to face prosecution.
Revenue Secretary, Hasmukh Adhia has appealed to the people having unaccounted wealth to come forward and make the declaration. If anybody knows information about people holding black money; they can send the information to the government via email provided for it.
The revenue generated from unaccounted wealth will be used for benefits of the poor of the country. The money will mainly be used for welfare and upliftment projects such as health, primary education, sanitation, irrigation, housing, infrastructure development etc.
If anybody has unaccounted wealth, it is the time and opportunity to disclose it; it will help you save from prosecution and above all, you will live with peace of mind! In addition, you also get a chance to contribute towards the social cause!
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