Addressing a press conference regarding the Pradhan Mantri Garib Kalyan Yojna (PMGKY), 2016 at the income tax department building, Sector 17, Rajendra Kumar, Chief Commissioner of Income Tax, North West Region, said that it is a golden chance for those possessing undisclosed income to pay tax without conviction.
Under the said scheme, any person can make, a declaration in respect of any income, in the form of cash or deposit in an account maintained by the person with a specified entity including the RBI, all the scheduled banks, any head post office or sub-post office till March 31.
The scheme which got operational from December 17 was launched post demonetisation.
The tax/surcharge and the penalty payable amounting to 49.9% of the undisclosed income has to be paid before filing of declaration before the jurisdictional commissioner of income tax under the said scheme.
Kumar added that the person making a declaration shall deposit an amount equal to 25% of the undisclosed income in the PMGKY, 2016.
“The person will get 25% amount not before 4 years from the date of deposit,” added Rajendra Kumar.
Officials said that non-declaration of undisclosed cash or deposits in accounts under the scheme would render undisclosed income liable to tax, surcharge and cess totaling to 77.25% of such income, if declared in the return of income.
“In case, the same are not shown in the return of income, a further penalty at the rate of 10% of tax should also be levied followed by prosecution. Tax and penalty in such cases will total to 83.25%,” added an officer.
The commissioner said that the scheme is expected to get a good response.
“People should surrender their undisclosed money under this scheme at the earliest before IT sleuths identify them,” he added.