RBI to announce facility for NRIs to exchange old notes
The Reserve Bank of India (RBI) on Saturday said that it will introduce a facility for exchange of old specified…
The government’s latest scheme for people to declare black money – The Pradhan Mantri Garib Kalyan Yojana (PMGKY) – will start on December 17. The scheme will remain open for three months, sources said on Friday.
“The PMGKY will start from tomorrow (Saturday), and the last date for disclosures is March 31, 2017. People have three and half months to declare their untaxed money. A declaration can be given before the Income Tax officer,” Revenue Secretary Hasmukh Adhia told media persons here.
The government assured people that declarations made under law will be kept secret.
“No prosecution will be carried on the basis of such disclosures. The declarations made under the the law will be kept a secret. The declarations will also not be used for payment towards service tax, excise duty, etc.,” he added.
The scheme is a part of the Taxation Laws (Second Amendment) Bill, 2016, and there will be no immunity from criminal acts like Prevention of Money Laundering Act, Narcotics Act or for holding ‘benami’ (by proxy) properties and smuggling offences.
“Investments in taxation regime or Pradhan Mantri Garib Kalyan Yojana is the last chance for people. Any person or company can disclose unaccounted income and pay 49.9 per cent, to be precise, as tax, surcharge and penalty along with 25 per cent amount in interest-free deposits for four years,” the official said.
According to the scheme, people can deposit money in their accounts by paying 50 per cent of the total amount — 30 per cent as tax, 10 per cent as penalty and 33 per cent of the taxed amount, that is 10 per cent, as Garib Kalyan Cess. The amount would be utilised for other development schemes such as irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood.
The scheme was passed by Parliament on November 29 to amend the income tax laws to provide for stiffer penal tax in the wake of the November 8 demonetisation.
(With inputs from agencies)
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