Hard cash being disclosed must exist on payment date: I-T dept
Weeks before the new tax amnesty scheme closes, the government has clarified that any hard cash being disclosed must exist at the time of making payments, but the same condition is not necessary for undisclosed income held in the form of deposits.
The tax department said "where the undisclosed income is represented in the form of deposits in an account maintained with a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the Scheme or furnishing a declaration under the Scheme".
However, when hard cash is being disclosed under PMGKY, its existence is necessary on the date of making payment of tax, surcharge and penalty under PMGKY."Where the undisclosed income is represented in the form of cash, it is clarified that such cash should exist on the date of making payment of tax, surcharge and penalty under the Scheme or on the date of making deposit under the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, whichever is earlier," the tax department said.
PMGKY, which provides amnesty from prosecution on payment of a total of 50 per cent tax and penalty on unaccounted cash in hand or in bank deposits, opened on December 17, 2016 and closes on March 31, 2017. Under the PMGKY after payment of tax, 25 per cent of the unaccounted money will have to be mandatorily parked with the government for 4 years as non-interest bearing deposit.