The Pradhan Mantri Garib Kalyan Deposit scheme (PMGKDS) 2016 beside new income tax modification is notified on 17th december, 2016. A Pradhan Mantri Garib Kalyan Deposit scheme (PMGKDS) is second income declaration scheme.
You’ll declare your unaccounted income under this scheme from 17th december 2016 to thirty first March, 2017. the govt. has kept a longer period for this scheme because the govt. needs a voluntary declaration of black money by most people. Let’s take a glance at key features of latest income declaration scheme Pradhan Mantri Garib Kalyan Deposit scheme.
Pradhan Mantri Garib Kalyan Deposit Scheme – Features
- Under this new declaration scheme, anyone will declare undisclosed income in form of money or deposit within the bank account.
- Those who have declared black money under this scheme are going to be levied a charge of 50, this charge consists of 30 minutes tax, 33rd Pradhan Mantri Garib Kalyan Cess and 100% penalty.
- In addition to this, the declarant has to make a mandatory deposit of 25th of the declare amount under zero interest Pradhan Mantri Garib Kalyan Deposit scheme for four years.
- The money deposited in Pradhan Mantri Garib Kalyan Deposit scheme are used for the development activities like irrigation, housing, construction of toilets, infrastructure, education and primary health.
- You will be left with of 25th money after tax payment and cash deposit in Pradhan Mantri Garib Kalyan Deposit scheme.
- As per this scheme, you wish to pay tax upfront. this is often opposite to the the primary income declaration scheme wherever income declaration was done first and tax recovery was done at later stage.
- The money disclosed under this scheme won’t be included in the income tax return of declarant.
- Discloser made under this theme will be kept completely confidential. However, this scheme doesn’t give any immunity to the declarant under any criminal acts mentioned in section 199-O of the scheme.
Tax Calculation for the Declaration of Income
Case 1 – Disclosure of Black Money – 5 Lakh
Disclosed Income – 5 Lakh
- Tax @ 30% of 5 Lakh = 1.5 Lakh
- Surcharge @ 33% of Tax = Rs. 49500
- Penalty 10% of disclosed income = Rs. 50000
- Total Amount payable as Tax = 2.49 Lakh
- 25% amount deposit in Pradhan Mantri Garib Kalyan Deposit Scheme = 1.25 Lakh
Amount left on hand = 1.26 Lakh
Case 2 – Disclosure of Black Money – 10 Lakh
Disclosed Income – 10 Lakh
- Tax @ 30% of 10 Lakh = 3 Lakh
- Surcharge @ 33% of Tax = Rs. 99000
- Penalty 10% of disclosed income = 1 Lakh
- Total Amount payable as Tax = 4.99 Lakh
- 25% amount deposit in Pradhan Mantri Garib Kalyan Deposit Scheme = 2.5 Lakh
Amount left on hand = 2.51 Lakh
Let’s take maximum benefit of this second income declaration scheme and disclose your black money. Let’s contribute towards nation building by paying tax honestly. It’s time to help a nation to fight against black money and terrorism. Official Notification about the scheme can be found on Income Tax website.