OBJECTIVE – To improve the financial position of the poor people. It is basically a poverty alleviation program. Under this program number of workshops were held.The main objective of this scheme is to improve the condition of society and remove the poverty from India
How is Demonetization helpful?
As we know that under Demonetization if someone tried to make deposits more than 2.5 lakhs then he will have to pay a penalty around 60% on his deposit amount.The amount collected as the penalty under demonetization drive will be used for the welfare of the poor people.
Eligibility for Deposits.—The deposits under this Scheme shall be made from the 17th day of December, 2016 till 31st day of March, 2017, by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
Authorised banks.—
Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (hereinafter referred to as Authorised Banks).
The Authorised Bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.
The authorised bank shall upload the details of deposit into Reserve Bank of India’s Core Banking Solution ‘e-Kuber’.
The Reserve Bank of India and Authorised Bank shall maintain the confidentiality of the data received in this regard.
Salient features
Declaration under it can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity.
Declarant of undisclosed income needs to pay 30% tax, 10% penalty and 33% Pradhan Mantri Garib Kalyan Cess on the tax, all of which add up to around 50%. Besides, declarant must make mandatory deposit of 25% of undisclosed income in the zero-interest Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 with lock-in period of 4 years.
The income declared under it will not be included in the total income of the declarant under the Income-tax (IT) Act for any assessment year. Besides, declarations made under it will be kept confidential and shall not be admissible as evidence under any Act (ex. Wealth-tax Act, Central Excise Act, Companies Act etc.).
However, declarant will have no immunity under Criminal Acts mentioned in section 199-O of the Scheme.
Non declaration of undisclosed cash or deposit in accounts under this Scheme will render tax, surcharge and cess totalling to 77.25% of such income, if declared in the return of income.
In case the same is not shown in the return of income a further penalty @10% of tax shall also be levied followed by prosecution.