The collection gathered in the over three-month long Pradhan Mantri Garib Kalyan Yojana (PMGKY) has not produced the same result as predicted by the government
The collection gathered in the over three-month long Pradhan Mantri Garib Kalyan Yojana (PMGKY) has not produced the same result as predicted by the government. Only Rs 2,300 crore was gathered through its second tax compliance window as compared with the I-T department’s informal target of Rs 1 lakh crore. Following the scrapping of Rs 500 and Rs 1000, PMGKY is considered as the second version of Income Declaration Scheme (IDS) giving people a second chance of depositing their unaccounted and undisclosed income. IDS first tax compliance window was from June 1- September 30 last year. A total sum of Rs 12,700 crore has been collected through two instalments of tax and penalties in 2016-17, as reported by The Indian Express.
Under the IDS scheme, the declarants were bound to pay 25 per cent in the first instalment by November 2016 and 25 per cent in the second instalment by 31 March 2017. According to I-T department, a person who has not declared his undisclosed cash or deposits under PMGKY scheme and has declared it under the income tax returns, that person will attract cess totalling 77.25 per cent of the income. If the disclosure of income is not made in any of these, then an additional penalty of 10 per cent was to be levied. Those who are raided and its found that declaration has not been made under PMGKY or under the income tax returns, then the person will attract 107.25 per cent tax and penalty. Even after that, those who hold back their hidden income will face the highest penalty of 137.25 per cent.
The Pradhan Mantri Garib Kalyan Yojana was launched post-demonetisation and came into effect on 16th December. The yojana was an opportunity for people to come clean by submitting their unaccounted wealth and black money by paying 50 per cent tax and penalty on the undisclosed income.