Published On : Wed, Jan 4th, 2017

Undisclosed income holders should take advantage of PMGKY: Gupta

The Income-Tax Department has urged those citizens who have not disclosed income held in cash and deposits should take advantage of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016 and avoid further action.

R K Gupta, Director General of Income-Tax Department (Investigation),Pune was addressing the representatives of trade, industry and professionals and create awareness about the scheme. He said that the Pradhan Mantri Garib Kalyan Yojana (PMGKY) notified along with other provisions of Taxation Laws (Second Amendment) Act, 2016, came into effect from December 17, 2016. “It will remain open until March 31, 2017. PMGKY is the Government’s second income disclosure scheme (IDS) to allow tax-evaders to come clean with their unaccounted wealth,” he said.

The scheme provides for 50 per cent tax and surcharge on declarations of unaccounted cash deposited in banks. Declaration under it can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with a bank or a post office or specified entity. The declarants of undisclosed income need to pay 30 per cent tax, 10 per cent penalty and other cess and surcharges which adds up to 50 per cent. “Besides, the declarant must make mandatory deposit of 25 per cent of undisclosed income in the zero-interest Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 with lock-in period of 4 years,” Gupta said. The income declared under it would not be included in the total income of the declarant under the IncomeTax (I-T) Act for any assessment year. Besides, declarations made under it would be kept confidential and would not be admissible as evidence under any Act (ex.WealthTax Act, Central Excise Act, Companies Act, etc.). He said: “The revised declaration can be filed in case of any omission or wrong statement. Misappropriation or suppression of facts will also render the declaration invalid. Having PAN is a must for declaration.”

Present were Kishore Dhule, Joint Director Investigation of IT Deptt, Nagpur, CA Rajesh Loya, Mahanagar Sanghchalak and President of the I-T Bar Assn, CA Julfesh Shah, CA Satish Sarda, CA Naresh Jakhotia, CA Swapnil Ghate, CA Sandip Jotwani, CA Umang Agrawal, CA Saket Bagadia, CA Surendra Durugkar, CA Disha Jogani, Prakash Wadhwani, Prakash Mehadia, Jayprakash Parekh, Sachin Puniyani, Hemant Gandhi and others. Suresh Battani, Director of I-T (Investigation), Nagpur made welcome speech. The programme was conducted by Kumudini Patil, Dy Commissioner of I-T Deptt, and Chinmay Kurgaonkar proposed the vote of thanks.