The government has started a scheme of Disclosure of Income scheme named Pradhan Mantri Garib Kalyan Yojana (PMGKY). Under this scheme, the person who allows other people to deposit money in his account, he has to pay 50% of the whole amount (30% tax, 10% fine and 33% of the tax which is 10% of the whole amount) in form of Poor Welfare Cess till 1 April 2017. Besides this, 25% amount will remain locked in Pradhan Mantri Poor Welfare Deposit Scheme till 4 Years.
Under the Taxation Laws (Second Amendment) Bill, 2016, the disclosure has to pay an additional tax regularly on the amount left after paying 60 percent Tax.
In this new income scheme (PMGKY), the total disclosed amount will not be included in disclosures total income.
Income tax department will also charge 30% fine along with the tax on the undisclosed income found during searching of income tax. This will happen when the searcher accepts that he found undisclosed income and prove that under which circumstances this undisclosed income was founded.
If the investigator does not happen, then the fine will be increased to 60% in addition to tax.
Financial Minister informs about objective and reason for this scheme that experts suggested, ” Government has to give a chance to people for whiten their black money taking heavy fines from them instead of letting them people making black money again black.”
He said that by this additional revenue will be got by Government for the work relating to the welfare of the poor, and along with this also the undisclosed income will be legitimate of the formal economy.
News Source: http://news.indiaonline.in