New Delhi, Dec 17: In another move of cracking down on black money, the Government increased the stakes and decided to send a stronger message to people who have deposited more amount of money than they could show the sources of, it declared that until and unless the prescribed taxes are paid, the tag of black money will not go away from such deposits. While the Government has been encouraging these declarants to come under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) which provides for a 49.9 per cent tax. Notably this rate is lesser compared with what concealed income would attract. In addition to this, revenue secretary Hasmukh Adhia warned that non-disclosure of deposits made in banks post demonetisation of Rs. 500 and Rs. 1000 notes would invite stiffer penalties and prosecution.
According to the new announcement, showing of undeclared black money as income in the tax return form will attract a total charge of 77.25 per cent in taxes and penalty. Adhia added that an additional 10 per cent penalty will be charged in case the disclosure is not made either using the PMGKY or in the return.
PMGKY will begin on Saturday, i.e December 17 and will remain open for declarations upto March 31, 2017. Under this scheme, the Government is targeting to bring in Rs. 2 lakh crore under the tax net, which is much higher than what any similar schemes in the past could bring in. Under the scheme, half of the declared income will required to be paid as tax, while 25 per cent will be locked in for four years without interest.
According to a report by Financial Express, revenue secretary Hasmukh Adhia said, “Beginning Saturday, most of the banks willl have challans to be filled for depositing tax for availing the PMGKY scheme. Only after payment of 49.9 per cent tax and setting aside the 25 per cent of the remaining undisclosed amount for four years can a person avail the scheme.”
The Government is working with its agencies like the Financial Intelligence Unit (FIU), Enforcement Directorate (ED) and the Income Tax Department, which are watching a close watch on monetary transactions. According to Adhia, they have information from FIU of how much deposits have been made in dormant accounts and likewise, hence facilitating the successful raids of the I-T Department.
On Thursday, the President of India Pranab Mukherjee gave a nod to the Taxation Laws (Second) Amendment Bill and the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.