The government has introduced its last and final amnesty scheme for encouraging the disclosure of concealed/unaccounted income. This is called the Pradhan Mantri Garib Kalyan Yojna.
Here is all you need to know about the scheme:
- Has it been introduced under an act or just through an executive resolution?:
- It has been introduced under Taxation Laws(Second Amendment) Act, 2016.
- When will it come into effect and what’s the duration of the scheme?
- It has come into effect from 17th December, 2016 and will remain open till 31st March, 2017.
- What are the key provisions of the scheme?:
- Disclosure can be made by any person in respect on undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity.
- Declarant has to pay:
- 30% tax.
- 33% Pradhan Mantri Garib Kalyan Cess.
- 10% penalty.
- This sums up to around 50%
- Pradhan Mantri Garib Kalyan Deposit scheme: 25% of the undisclosed income in a zero interest deposit account with a lock-in period(minimum time till which deposit remains in the account) of 4 years.
- The income declared will not be included in the total income of the declarant under the I-T Act.
- Also, declaration to be kept confidential .
- If a person with concealed income do not declare the same under this act, it will attract a penalty and surcharge upto around 78% .