Govt bars cooperative banks from accepting deposits under new tax amnesty scheme Pradhan Mantri Garib Kalyan Yojana
The Centre has today barred cooperative banks from accepting deposits under PMGKY scheme. The direction has come amidst the Income Tax department uncovering anomalies post demonetisation. After banning old Rs 500 and Rs 1,000 notes, the governmnt had come up with an amnesty scheme for those having unaccounted cash by asking them to pay 50 percent tax and shifting one-fourth of it in a no-interest bearing four-year deposit.
deposit could be made with any banks. Hover today cooperative banks have been barred from accepting such deposits. The scheme is on till March 31 this year. “Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company, other than Co-operative Banks, to which the Banking Regulation Act, 1949, applies,” the government said.
As per the scheme, holders of unaccounted cash who are willing to grab the offer will have to first pay the tax amount and then fill up a form provided by the bank for the deposit scheme. The banks, which have been authorised, have to submit electronically the details of deposit to the Revenue Department on the next working day to allow information verification of the deposit before accepting the declaration under scheme.
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The RBI and other authorised banks will ensure full confidentiality of the data. The notification has come after the Income Tax department saw irregularities in deposits of cooperative banks after the demonetisation step of the government since November 8.
(With inputs from PTI)