Here’s how you can make last-minute declaration of black money under Pradhan Mantri Garib Kalyan Yojana, 2016

By: | Published: March 31, 2017 1:08 PM

The D-Day has finally arrived. If you still have black money left, then today is the last day for you to declare it under the Pradhan Mantri Garib Kalyan Yojana, 2016. You still have time until midnight.

A person or an entity who is going to invest one’s money in the PMGKY scheme will have to pay 49.9 percent tax on the undisclosed income.

The D-Day has finally arrived. If you still have black money left, then today is the last day for you to declare it under the Pradhan Mantri Garib Kalyan Yojana, 2016. You still have time until midnight. As per instructions of the Income Tax Department, all its designated offices which can accept the declaration under the black money window of the Pradhan Mantri Garib Kalyan Yojana, 2016 will have to remain open until midnight today.

A person or an entity who is going to invest one’s money in the PMGKY scheme will have to pay 49.9 percent tax on the undisclosed income, whereas a person who does not invest in the scheme and discloses his black income directly in his Income Tax Returns will have to face a heavy penalty of 77.25 per cent.

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However, before making investment in the PMGKY scheme, one should know the following things:

Important features of the scheme

1. Declarations can be made by any person or entity 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 have 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.

How can one make last-minute declaration

Visiting the website incometaxindinaefiling.gov.in, you can fill the form through online and submit the declaration, or else you can submit a printed form to jurisdictional Pr. Commissioner / Commissioner of income tax along with all the proof of tax payments etc.

Silent features of the scheme

1. Total confidentiality will be ensured
2. The declared income under the scheme is not going to be taxable under the I-T Act.
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.

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Also, one should know that one who will neither invest nor will file ITR either under the scheme and is caught with undisclosed income in scrutiny assessment will have to face a severe tax penalty which will be charged at 83.25 per cent. Lastly, people who are not willing to declare income in either way under the PMGKY and are raided will have to face a tax penalty of 107.25 percent, if any undisclosed income is caught or surrendered during the raid.

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