A simple two-page form is all that needs to be filled for declaring unaccounted cash under the new tax evasion amnesty scheme which does not require one to reveal the source of such income.
For declaration under the PMGKY scheme, the only thing required is the details of bank and/or post office accounts where the cash has been deposited post the junking of old Rs 500 and Rs 1,000 notes. One will, however, also have to furnish the payment details of 50 percent tax -- a must for availing immunity from prosecution for hiding income.
According to a PTI report, declarants will need to fill in personal details like office and home address, telephone numbers, email and PAN, according to the notification issued for The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY) Rules, 2016.
The declaration to the Principal Commissioner/ Commissioner of Income Tax can be done electronically under digital signature or in print form. The Tax authorities will issue a certificate to the declarant within 30 days from the end of the month in which a valid declaration has been furnished.
After paying a total of 50 per cent tax, a quarter of the amount declared is to be deposited in a non-interest bearing deposit called Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 for four years, the notification said. Such deposits will not be transferable except to nominee or the legal heir of the declarant in the event of death.
Quoting PAN is mandatory for the scheme. "...if the declarant does not hold a PAN, he shall apply for a PAN and provide the details of such PAN application along with acknowledgment number," the notification said, reports PTI.
Also, no commission/agency bank charges will be paid to the banks for accepting deposits under the scheme or for servicing the declarants.
Offering one last window to black money holders, the government has come out with a scheme giving black money holders time until March-end to come clean by paying 50 per cent tax on bank deposits of junk currencies made post demonetisation.
Offering tax dodgers confidentially and immunity from prosecution under this new amnesty scheme, which commenced on December 17, Revenue Secretary Hasmukh Adhia has told PTI that non-disclosure of unaccounted money deposited in banks after the Rs 500 and Rs 1000 notes was junked will attract stiffer penalties as well as prosecution.
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. 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.