Print Friendly

untitled

‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016′ (PMGKY) introduced vide Taxation Laws (Second Amendment) Act, 2016 shall commence on 17th December, 2016 and shall remain open for declarations up to 31st March, 2017.

The salient features of the scheme are as follows:

  • 30 per cent tax on undisclosed income and 33 per cent surcharge.
  • 10 per cent tax on undisclosed income.
  • 25 per cent of undisclosed income has to be deposited in the Pradhan Mantri Garib Kalyan Deposit Scheme for a lock in period of 4 years (non-interest bearing).
  • Under this scheme undisclosed income only in the form of cash or deposits in an account with bank or post office or specified entity can be disclosed.

For instance Mr. A is having undisclosed cash of Rs. 1,00,000/- (Rupees One Lakh) and he wants to disclose the sum under Pradhan Mantri Garib Kalyan Yojana, 2016. The tax and deposit calculation will be as follows:

1.

Undisclosed Cash

 

1,00,000

 

2.

Tax Calculation

   

 

 

Particulars

Tax Rate

Amount

 

 

Tax

30%

30,000

 

 

Surcharge

33% of tax

9,900

 

 

Penalty

10% of undisclosed cash

10,000

 

 

Total tax liability

49.9% of undisclosed cash

49,900

 

3.

Deposit under Pradhan Mantri Garib Kalyan Yojana, 2016

25,000