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Govt to kick start new income declaration under PMGKY scheme tomorrow; stiff penalties proposed

In order to fight black money that has been rampant in our economy, the government today announced that voluntary black money declaration under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) will kick start tomorrow i.e 17 December. People with unaccounted cash can disclose it under PMGKY scheme by paying 50 percent tax and penalty before 31 March, 2017, said Revenue Secretary Hasmukh Adhia.

"We want people to join PM Garib Kalyan Yojana and through this scheme they contribute to welfare of the people. Unaccounted cash can be disclosed under PMGKY that comes with 50 percent tax and penalty starting from tomorrow till 31 March, '17," said Revenue Secretary Hasmukh Adhia.

 Govt to kick start new income declaration under PMGKY scheme tomorrow; stiff penalties proposed

Hasmukh Adhia, Revenue secretary.

In this regard, the President also cleared amendment to the taxation laws.

Meanwhile, CBDT chairman Sushil Chandra also said they have issued around 3,000 notices to people based on the details of deposits in bank accounts. Further, the tax department also conducted searches and seizures in about 291 cases and carried out surveys in 2915 cases, said CBDT chairman.

So far, the tax department through several raids have seized over Rs 316 crore, including Rs 80 crore in new notes besides jewelleries worth Rs 76 crore, taking the total to Rs 393 crore, added CBDT chairman.

The Lok Sabha, which passed the Taxation Laws (2nd Amendment) Bill, 2016, on 29 November, said it proposes to levy a total tax, penalty and surcharge of 50 percent on the amount deposited post demonetisation while higher taxes and stiffer penalty of up to 85 percent await those who don't disclose but are caught.

Finance Minister Arun Jaitley had said the bill was brought after it came to the government's notice that some people were trying to illegally exchange the demonetised Rs 1,000 and Rs 500 currency notes. Jaitley said as per the amendment proposed, those caught illegally converting money will have to cough up 60 percent tax plus penalties, which will come to 85 percent.

Those who disclose black money to banks will have to pay 50 percent tax, including surcharge and penalty. While they will get back 25 percent immediately, the rest 25 percent will be returned after 4 years.

With PTI inputs

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Updated Date: Dec 16, 2016 18:08:41 IST

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