Foreign Account, Property, Bullion Can't Be Disclosed Under PMGKY, Says Govt
In a recent announcement, the goverment has clarified disclosure norms under the new tax evasion amnesty scheme — Pradhan Mantri Garib Kalyan Yojana (PMGKY). The government announced that only unaccounted domestic cash could be declared through it and jewellery, stocks, immovable property and foreign accounts will not come under its purview. The scheme, also, allows any person to disclose even deposits parked in others' accounts.
The smart scheme
- PMGKY allows people with unaccounted money to deposit previously untaxed money. The Central Board of Direct Taxes (CBDT) clarified that undisclosed income deposited in any financial institution can be declared by paying 50 per cent of it in taxes and surcharges.
- Additionally, the ones declaring will have to deposit 25 per cent of undisclosed income in a 'no-interest' deposit scheme for a lock-in period of four years.
- If the declarant does not want to put the money in the government deposit scheme, 85 per cent of the amount will be deducted as taxes and penalties.
- For the money that is found in raids, taxes and penalties, nearly 90 per cent of the amount will be levied, leaving meagre 10 per cent with the owner.
- Any one who wants to disclose deposits parked in others' accounts can also do through this scheme.
- The gathered funds will be utilised for improvement in infrastructure, health care, education of the poor across the country.
Last year, the central government had come out with an Income Disclosure Scheme (IDS) for holders of unaccounted wealth held in cash and kind which had closed on September 30, 2016.
Recently, the CBDT also clarified that undisclosed income represented in the form of deposits in a foreign bank account was not eligible under the scheme because a separate foreign black money disclosure window was provided earlier which had closed in September 2015.
The government said a declaration under the scheme could be made specifying deposits made in an account maintained with any specified entity through cash, cheque, RTGS, NEFT or any electronic transfer system.
"A person can avail the Scheme for any assessment year commencing on or before April 1, 2017. Hence, deposits made in a bank account prior to the financial year 2016-17 can also be declared under the Scheme,” the government order said.