The Government of India, in consultation with the Reserve Bank of India (RBI), had notified Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 vide notification no. S.O.4061(E) dated December 16, 2016.
Deposits under this scheme can be made by any person who has declared undisclosed income. The sum, which shall not be less than twenty-five per cent of the declared undisclosed income, can be deposited at the authorized banks (as notified by Government of India) up to March 31, 2017.
Recently the government issued some clarifications regarding the scheme. It said that representation has been received from various stakeholders seeking clarification as to whether the deposits made in a bank account or cash in hand which is eligible for being declared under the scheme should exist of the date of filing of a declaration under the scheme.
In this context, the government clarified that where the undisclosed income is represented in the form of deposits in an account maintained by a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the scheme or furnishing a declaration under the scheme. However, where the undisclosed income is represented in the form of cash, it is clarified that such cash should exist on the date of making a deposit under the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016, whichever is earlier.
Here’s how you can deposit your undisclosed income in the scheme before 31st March 2017.
Declaration of such undisclosed income will be liable to tax, surcharge, and cess at the rate of 77.25 percent along with penalty, prosecution and enforcement actions.
Main features of the scheme
1. Declarations 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.
2. Tax, surcharge, and penalty totaling up to 49.9 percent of the undisclosed income has to be paid.
3. Mandatory deposit of 25 percent of the undisclosed income to be made in Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016.
4. The deposits are interest-free and have a lock-in period of four years.
Mode of making declaration
You can fill the form through online, visiting the website incometaxindinaefiling.gov.in or else you can submit a print form to jurisdictional Pr. Commissioner / Commissioner of income tax along with proof of payments of tax etc. and deposit under the scheme.
Immunity of the scheme
1. Ensuring total confidentiality
2. The income declared under the scheme will not be taxable under the Income Tax Act 1961.
3. Immunity in respect of declaration made under the scheme also available under all the Acts other than those specified in the section 199-O of the scheme.