Black Money Collected After Note Ban Will Be Used For PMGKY

Hyderabad: The main objective of Pradhan Mantri Garib Kalyan Yojana (PMGKY)- 2016 is to use black money collected post-demonetisation in welfare schemes for the poor, said  Sushil Kumar, Chief Commissioner of Income Tax, Hyderabad.  Sushil Kumar explained on the salient features of the PMGKY to the media in Hyderabad today. He said that the scheme, which commenced from  December 17 and shall remain open for declarations up to 31st March, 2017. Declaration under the Scheme can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity, he said.

PMGKY provides for two tier regime of tax and investment of unaccounted income represented by cash and specified deposits for the period up to FY 2016-17. Black money holders get a chance till 30th December to deposit unaccounted cash in banks covered by Banking Regulation Act, Head post office and sub-post office. Sushil Kumar also said that there is need to pay tax, surcharge and penalty aggregating to 50 percent of the unaccounted cash or deposits with RBI, bank including co-operative bank covered by Banking Regulation Act, Head post office or Sub-post office or nay other entity notified by the central government.

There is also need to deposit 25 percent of the unaccounted cash or deposits in PMGKY Bonds on zero interest refundable after lock-in for four years. He informed that declaration should be made in prescribed from in respect of unaccounted cash or deposits by 31st March, 2017 with proof of payment of 50 percent tax, surcharge and penalty and proof of deposit of 25 percent of deposit in RBI Bond.

Sushil Kumar said that the scheme is not applicable to crime money generated by smuggling activities, drugs and narcotics, unlawful activities, benami transactions, money laundering, security scam of 1992, corruption and under offences punishable under chapters IX (offences by or relating to public servants like unlawfully engaging in trade, unlawfully buying or bidding for property, etc) and XVII (offences for property like theft, robbery, dacoity, extortion, murder, etc) of the IPC and Foreign income and assets.

Explaining on the consequences of failure to make use of the scheme, he said that, steeper 60 percent of unknown income as tax and further 15 percent as surcharge, thus 75 percent of the unknown income shall be paid as tax and surcharge. They can file tax returns at the end of the FY 2016-17 for A.Y. 2017-18 onward and declare unknown income but will have to pay.