Offering one last chance to turn black money into white, PM Garib Kalyan Yojna begins today

New Delhi: President Pranab Mukherjee's assent to the Taxation Laws (Second Amendment) Bill 2016, the Act which has provisions to levy total tax, penalty and surcharge of 50 percent on the amount deposited post demonetisation, comes into force on Saturday.

1. Under the scheme, the money collected from taxes and penalty on undisclosed incomes can be deposited in the Pradhan Mantri Garib Kalyan Yojna (PMGKY) account from December 17 to March 31.
2. The declarations will be kept confidential and people can also give information about black money on the e-mail ID- blackmoneyinfo@incometax.gov.in. Also, as the disclosures will be kept confidential, the holder of unaccounted cash need not disclose it in Income Tax Returns forms.
3. The money generated from disclosure of unaccounted cash under the Act - which has higher taxes and stiffer penalty of up to 85 percent in respect of those found to be involved in conversion of black money into white - will be used for welfare scheme.
4. Unaccounted cash can be disclosed under PMGKY that comes with 50 percent tax that will be charged on declarations and quarter of the total sum will be parked in a non-interest bearing deposit for four years.
5. Mere depositing black money won't make it white unless tax is paid on it. As per the scheme, taxes will have to be paid first and then the scheme can be availed on production of tax receipt.
6. Non-disclosure of deposits made in banks after the Rs 500 and Rs 1000 notes were junked will attract stiffer penalties as well as prosecution.
7. Not declaring the black money under the scheme now but showing it as income in the tax return form would lead to a total levy of 77.25 per cent in taxes and penalty.
8. In case the disclosure is not made either using the scheme or in return, a further 10 per cent penalty on tax will be levied followed by prosecution, he said.
9. Beginning today, most of the banks will have challans to be filled for depositing tax for availing the PMGKY scheme.
10. Only after payment of 50 per cent tax and setting aside the 25 per cent of the remaining undisclosed amount for 4 year, a person can avail the PMGKY scheme.

Offering one last chance to black money holders, the government on Friday said they have time until March-end to come clean by paying 50 per cent tax on bank deposits of junk currencies made post demonetisation.