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-
- Tax @30% of the undisclosed income.
- Penalty @10% of the undisclosed income.
- 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.