Indore: Those who did not disclose their cash and bank deposits, including those who tried to launder their unaccounted money during demonetisation by making payments of over drafts and prepayment of loans, have come on the radar of Income Tax Department (ITD). ITD has offered an opportunity to come clean by paying income tax just 49.9 per cent under Pradhan Mantri Garib Kalyan Jama Yojna (PMGKJY).
ITD had received information that despite given a change under Income Declaration Scheme to disclose unaccounted cash and deposits, tax dodgers looked reluctant. Interacting with the media, officiating chief commissioner of Income Tax Indore Region AK Jaiswal told here on Friday that all bank details and data of people were with ITD who had huge cash and deposits in banks and in form of other valuables. Keeping an amnesty approach towards them, the department has rolled out PMGKY. Aim of the scheme is to offer a change to tax dodgers assuring them that the amount collected under the scheme would be solely used for welfare of the poor.
Highlighting features of the scheme, Jaiswal said it started on December 17 and would end on March 31. Under the scheme, a person can make declaration in respect of any income in the form of deposit in an account maintained by the person with a specified entity and as per section 199 C (2) the banks and post offices come under the definition of specified entity. Thus undisclosed income deposited in saving/current accounts, recurring deposit accounts, fixed deposit, PPF, senior citizen saving scheme, monthly income scheme, Jan Dhan Yojana accounts can be declared under the scheme.
Sharing the tax structure, he said a declaring person had to pay income tax @ 30 per cent on total undisclosed amount, then surcharge @ 33 per cent on tax amount and penalty @ 10 per cent on such income. Total 49.9 per cent tax has to be paid. Twenty-five per cent amount will be locked for four years. Declaration forms are available in banks and can be applied under PMGKJY through online or offline, for which having PAN is mandatory.
However, those who still miss the change and come for declaration after the date would have to pay I-T @ 77.25 per cent and if they come under any survey or search action then they would have to pay additional 10 per cent tax, totaling 87.25 per cent.
Deposits made in demonetisation can also be declared
Jaiswal said those who deposited unaccounted money in banks during demonetisation could also participate in the scheme. By participating in the scheme, people would make contribution in eradication of poverty from the country.