Centre eases norms of amnesty scheme; PMGKY won't ask for income source
The Centre has come out with the amnesty scheme where a declaration can be made until March 31.
New Delhi: The government has kept the form for declaring unaccounted money under Pradhan Mantri Garib Kalyan Yojana (PMGKY) simple. A two-page form is all that needs to be filled for declaring unaccounted cash under PMGKY and does not require one to reveal the source of such income.
To make a declaration under PMGKY, the person has to only give details of bank and/or post office accounts where the cash has been deposited post demonetisation.
One will, however, also have to furnish the payment details of 50 per cent tax — a must for availing immunity from prosecution for hiding income. Unlike the earlier amnesty scheme, in PMGKY a person has to first pay tax to avail amnesty.
Offering a last chance to black money holders, the Centre has come out with the amnesty scheme where a declaration can be made until March 31. Under PMGKY, people can come clean by paying 50 per cent tax and lock in 25 per cent of the total declared funds in interest-free bonds for four years.
The declarant will have to give personal details like office and home address, telephone numbers, email and PAN, according to the notification issued for The Taxation and Investment Regime for PMGKY Rules, 2016.
The declaration to the Principal Commissioner/Commissioner of Income-Tax can be done electronically under digital signature or in print form. The tax authorities will issue a certificate to the declarant within 30 days from the end of the month in which a valid declaration has been furnished.
After paying a total of 50 per cent tax, a quarter of the amount declared is to be deposited in a non-interest bearing deposit called Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 for four years.
The RBI has notified PMGK Deposit Scheme, 2016. The deposit sum, which will not be less than twenty-five per cent of the declared undisclosed income, can be deposited at the authorised banks. The deposits under this scheme will have to be made in a single payment. The deposits shall be held to the credit of the declarant in Bonds Ledger Account (BLA) maintained with RBI and would be repaid on expiry of four years.
On deposit, an acknowledgement receipt mentioning the name of declarant and amount deposited will be duly authorised and provided by the bank from which application was made.
Subsequently, a certificate of holding for the BLA will be issued which may be collected from the authorised bank. There is no option for premature redemption of the BLA. The BLAs cannot be gifted/transferred to any relative or friend.