Govt is trying to squeeze the balck money from all the black money hoarders in India. And to take this step forward after the historical demonetization move, they have launched another scheme called Pradhan Mantri Garib Kalyan Yojana or PMGKY.
Although there were provision of tax penalty on disclosure of unaccounted cash, but now Govt has tighten the existing rules ever more as there were certain loopholes in the existing rules. Not only that, to make the process more worthy Govt has linked the recovery tax to the development of the poor or needy people of India by launching Pradhan Mantri Garib Kalyan Yojana.
Things to know about Pradhan Mantri Garib Kalyan Yojana (PMGKY)
This scheme will be applied to those who want to declare their unaccounted cash voluntarily. In case this has been disclosed by some raid or tax audit this scheme will not be applied.
- One need to pay less tax, not zero tax under this Pradhan Mantri Garib Kalyan Yojna.
- After disclosing the unaccounted cash through this scheme, the black money holder will have future immunity on the declared amount.
- The declarations under this scheme can be made till December 30, 2016.
- The 50% tax can be further explored as income tax @ 30%; penalty @ 33% or income tax (10% of total declared amount) and Pradhan Mantri Garib Kalyan Cess @ 10%. This amounts to 50% of the total declared amount.
- 25% of disclosed amount after tax payment will be parked for 4 year without earning any interest. That means black money hoarder will get 25% of the declared money and remaining 25% after 4 years. This money will be used to improve irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood creation.
- In case the unaccounted cash is not disclosed under this Pradhan Mantri Garib Kalyan Yojana, then the person need to pay a very high penalty tax of around 75% (flat income tax @ 60% and a surcharge @ 25% of the tax (15% of total amount), amounting to a total of 75%).
- In addition to that Ao or Assessment officer can impose a further penalty of 10%, which could bring the combined taxes and penalties to 85% and depositor will get only 15% of cash deposited.This scheme is going to be passed in parliament very soon. Hopefully this scheme will also become a success like many other Govt schemes launched in last few years.
These are few of the basic information about this scheme. But I think the purpose is clear enough and hopefully the scheme will be able to hit the actual area of problem. Do you think Garib Kalyan yojana Scheme will really help the needy & poor people in India? Share your thoughts by writing a comment below.