Unaccounted cash deposits to be taxed @50 % - All about PMGKY scheme
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PRADHAN MANTRI GARIB KALYAN YOJNA, 2016 Last call for the tax evaders to come clean New Penalties & Additional Taxes on Black Money Holders
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Transcript of Unaccounted cash deposits to be taxed @50 % - All about PMGKY scheme
PRADHAN MANTRI GARIB KALYAN YOJNA, 2016
Last call for the tax evaders to come
cleanNew Penalties & Additional Taxes on Black Money
Holders
DECLARE YOUR UNACCOUNTED CASH AND PAY TAXES
SCHEME IS VALID TILL 30 DECEMBER, 2016
ONCE TAXES & PENALTY PAID ON DECLARED AMOUNT, BLACK MONEY HOLDERS WILL HAVE FUTURE
IMMUNITY ON THE SAID AMOUNT
ALL ABOUT PMGK YOJNA
TAXES TO BE PAID = 50% OF THE DECLARED AMOUNT
WILL HAVE TO DEPOSIT 25% OF THE AMOUNT IN PMGKY SCHEME WITH ZERO INTEREST, LOCK IN
PERIOD OF 4 YEARS IN THE SAID SCHEME
LEAVING 25% OF THE DECLARED AMOUNT IN THE HANDS OF BLACK MONEY HOLDER
FOR AMOUNT NOT DECLARED UNDER THE SAID SCHEME, TAXES TO BE PAID = 75% OF THE SUCH
AMOUNT
FURTHER, PENALTY OF 10% CAN BE IMPOSED BY ASSESSING OFFICER
LEAVING 15% OF THE MONEY IN THE HANDS OF THE BLACK MONEY HOLDER
ILLUSTRATION ON SUCH SECHEME
PARTICULARS AMOUNT (RS.)
1. Undisclosed Cash Deposit 10,00,000.00
2. Amount to be deposited in the scheme = 25% of 10,00,000.00
2,50,000.00
3. Balance available for penal tax = (1-2) 7,50,000.00
4. Tax on 1 @ 30% = 30% of Rs. 10,00,000.00
3,00,000.00
5. Pradhan Mantri Kalyan Cess @ 33% of the tax
1,00,000.00
6. Penalty @ 10% on 1= 10% of 10,00,000.00
1,00,000.00
7. Total penal tax to be paid = (4+5+6) 5,00,000.00
8. Balance available for immediate use = (3-7)
2,50,000.00
INTENTION TO INTRODUCE SUCH SCHEME
1.• An attempt to plug
the loop holes in the present Income Tax Act, 1961 to conceal the black money.
2.• Its aim is to use
black-money collected post-demonetisation in welfare schemes for the poor.
3.• An attempt to bring
the undeclared income of the past, legitimately into the formal economy.
ADDITIONAL POINTS TO BE NOTED
The declarant at its discretion can deposit an amount in excess of 25% of the Undisclosed Cash Deposit under the Deposit Scheme. The payment of Penal Tax and the Deposit Scheme deposit should be made before filing the declaration and the declaration should be accompanied by proof to this effect. After the lapse of four years, the amount so deposited (whether 25% of Undisclosed Cash Income or higher) can be withdrawn for use and the amount of Penal Tax shall not be refundable.
