The CBDT today issued an order that all designated offices of the Income Tax department which can accept declarations under the black money window of PMGKY will remain open till midnight of March 31. “The last date for making declaration under the Pradhan Mantri Garib Kalyan Yojana, 2016 is March, 31 2017. “Therefore, in order to facilitate the filing of declarations even after the office hours on the last date, the CBDT, hereby directs that the designated offices for receiving the declarations under PMGKY shall remain open till the midnight of March 31, 2017 in all jurisdictions,” the CBDT order said.
The Central Board of Direct Taxes (CBDT) is the policymaking body of the Income Tax department. A person or entity who opts for PMGKY will have to pay 49.9 per cent tax on the undisclosed income, whereas a person who does not opt for the scheme but offers his black income in his Income Tax Returns will face a tax and penalty rate of 77.25 per cent.
The one who does not offer his stash funds under the scheme but is caught with undisclosed income in scrutiny assessment will face 83.25 per cent tax rate. For those who do not declare their stash under the PMGKY and are raided will face 107.25 per cent tax and penalty if the undisclosed income is surrendered during the action. Those who do not surrender such hidden income even during searches will stand to face the highest level of penalty and tax at 137.25 per cent.
The Centre had come out with the PMGKY scheme after its decision to demonetise high value currency notes of Rs 500 and Rs 1,000 last year. A quarter of the total sum will also have to be parked in a non—interest bearing deposit for four years under the said scheme. The scheme had commenced on December 17 last year.