Government's latest scheme to declare black money opens Saturday
"The PMGKY will start from tomorrow (Saturday), and the last date for disclosures is March 31, 2017. People have three and a half months to declare their untaxed money. A declaration can be given before the Income Tax officer," Revenue Secretary Hasmukh Adhia told media persons here.
"No prosecution will be carried on the basis of such disclosures. The declarations made under the the law will be kept a secret. The declarations will also not be used for payment towards service tax, excise duty, etc.," he added.
However, there would be no immunity from criminal acts like Prevention of Money Laundering Act, Naroctics Act or for holding 'benami' (by proxy) properties and smuggling offences, he said.
"Investments in taxation regime or Pradhan Mantri Garib Kalyan Yojana is the last chance for people. Any person or company can disclose unaccounted income and pay 49.9 per cent, to be precise, as tax, surcharge and penalty along with 25 per cent amount in interest-free deposits for four years," Adhia said.
The scheme allows people to deposit money in their accounts by paying 50 per cent of the total amount -- 30 per cent as tax, 10 per cent as penalty and 33 per cent of the taxed amount, that is 10 per cent, as Garib Kalyan Cess.
This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood.
The scheme is a part of the Taxation Laws (Second Amendment) Bill, 2016, passed by the Parliament on November 29 to amend the income tax laws to provide for stiffer penal tax in the wake of the November 8 demonetisation.
Cameras were asked to be turned off during the question answer session with the Revenue Secretary.