Undisclosed income holders must avail PMGKY: Gupta

Source: The Hitavada      Date: 04 Jan 2017 11:45:33

Business Bureau,

R K GUPTA, Director General of Income-Tax Department (Investigation),Pune on Tuesday called upon the assessees who have undisclosed income held only as cash or deposit (bank or post office), should take advantage of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016. Gupta was in the city to address 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 declarant of undisclosed income needs to pay 30 per cent tax, 10 per cent penalty and other cess and surcharges which adds upto 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 Income-Tax (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. Wealth Tax 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.”

According to the procedure, Gupta said, the declaration to be filled in the Form No Q, could be filed electronically under digital signature or through transmission of data electronically under EVC or in print form. The deposits of 25 per cent under the scheme could be made in the authorised banks as notified by the Government. It should be in the multiples of Rs 100 and the entire deposit to be made in a single payment. The certification of holding would not be tradable.

Present were Kishore Dhule, Joint Director Investigation of I-T 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.