Pradhan Mantri Garib Kalyan Yojana

The government on 28th November 2016, announced yet another income disclosure scheme, named as pradhan Mantri Garib Kalyan Yojana, giving an opportunity to money hoarders to pay taxes and disclose their unaccounted money. Once tax and penalties are paid the black money hoarders will have future immunity on the declared amount.

Declarations in this scheme can be made upto 30th December 2016.

For amounts declared under this scheme, the taxes and penalties will include income tax @ 30%; penalty @ 33% or income tax (10% of total declared amount) and Pradhan Mantri Garib Kalyan Cess @ 10%. This amounts to 50% of the total declared amount.

Further, 25% of the amount declared under the scheme will be parked in a government fund for a period of four years @ 0% interest. This fund is meant to be used for improvement of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood creation. This would leave 25% of the amount in the hands of the black money holder.

For unaccounted cash not declared under the scheme, the taxes and penalties will include a flat income tax @ 60% and a surcharge @ 25% of the tax (15% of total amount), amounting to a total of 75%.

Further, the assessing officer would have the discretion of imposing a further 10% penalty, which could bring the combined taxes and penalties to 85%. This would leave 15% of the amount in the hands of the black money holder.

For unaccounted money that is seized by authorities in raids, the system of levying 30% income tax and penalty of 50% of tax (for under-reporting of income) or 200% of tax (for misreporting of income) will continue.

The amendment introduced by Jaitley in the Lok Sabha can be expected to be passed without hiccups, as the government has a majority in the Lower House. Also, it cannot be rejected or stalled in the Rajya Sabha, as it is a money bill. The Upper House, where the government is in a minority, can only review it.

sehpaathi

Disqus Comments Loading...

Recent Posts

Marine Collagen and Biotin: The Dynamic Duo for Healthy Skin, Hair, and Nails

In the quest for glowing skin, luscious hair, and strong nails, the combination of marine…

3 months ago

Dive into Marine Collagen: Your Ultimate Guide to Youthful Skin, Strong Joints, and Radiant Hair

In the world of wellness and beauty, marine collagen has emerged as a potent supplement…

4 months ago

Why Orange Flavor Creatine is the Perfect Addition to Your Workout Routine

Creatine has long been a staple in the world of fitness and bodybuilding. Known for…

4 months ago

Learn All About Collagen and the Best Collagen Supplements

Collagen supplements have gained immense popularity, both online and offline, becoming a staple in many…

4 months ago

5 Best Supplements to Include in Your Fitness Routine

As the New Year approaches, many people resolve to get fit, but as time goes…

4 months ago

Top 10 Perfume Brands for Men in India

Luxury fragrances are appreciated for their natural notes derived from flowers, spices, and other natural…

5 months ago