New Disclosure Scheme commences from tomorrow till 31 March 2017!

The new Income Disclosure Scheme: Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) for disclosure of unaccounted money will commence from tomorrow and will end on 31 March 2017.

The provisions of the New Income Declaration Scheme require declarants to pay-

  1. Tax @30% of the undisclosed income.
  2. Penalty @10% of the undisclosed income.
  3. Surcharge @33% on the amount of tax.

Which amounts to approximately 50 % tax of the undisclosed income.

This Pradhan Mantri Garib Kalyan Yojana is the second income disclosure scheme brought in by the government this year, giving another chance to tax evaders to come clean after scrapping Rs500 and Rs1,000 denomination notes on 9 November.

“The government has such a given a long window for the declarations because we want people to voluntarily come forward and make their declarations,” said revenue secretary Hasmukh Adhia.

Source: http://www.livemint.com/Politics/KMMcFOWTubmtPrbX7MICLJ/New-income-disclosure-scheme-to-start-Saturday-run-till-31.html

CA Abhishek Soni

By CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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