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PRADHAN MANTRI GARIB KALYAN YOJANA

PRADHAN MANTRI GARIB KALYAN YOJANA

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Page 1: PRADHAN MANTRI GARIB KALYAN YOJANA

PRADHAN MANTRI GARIB KALYAN YOJANA

Page 2: PRADHAN MANTRI GARIB KALYAN YOJANA

Commencement

It came into force from the 17th day of December, 2016 and shall be valid till 31st day of March, 2017.

This Scheme shall be applicable to every declarant under the “Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016” .

The payment of Tax, Surcharge and Penalty under the scheme is to be made through challan -ITNS-287 and the deposits are to be made under the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016 .

Page 3: PRADHAN MANTRI GARIB KALYAN YOJANA

Which Deposits can be Declared?

Any form of deposits maintained with a Bank or Post Office like:-

Savings Account

Current Account

Recurring Deposit Account

Fixed Deposits

Senior Citizen Savings Scheme

Monthly Income Scheme

Jan-Dhan Yojana Account

Can be Declared under the PMGKY.

Page 4: PRADHAN MANTRI GARIB KALYAN YOJANA

Procedure for Declaration under PMGKY

Firstly, Declarant has to fill Challan-ITNS-287 through which Taxes, Surcharge and Penalty, has to be paid to the govt.

After payment of Taxes, Surcharge and Penalty, minimum 25% of the Undisclosed Income has to be deposited in the Bonds Ledger Account i.e. under PMGKDS,2016 in Form II.

After above payments, declarant will have to fill Form-1 along with the Two Attachments i.e. Proof of Payment of Total Taxes and Proof of Deposit in Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

Page 5: PRADHAN MANTRI GARIB KALYAN YOJANA

Procedure for Declaration under PMGKY..

Declaration of income to be filled in Form-1 specifying form of cash or deposit made in an account maintained with a specified entity, under sub section (1) of section 199C.

The declaration shall be furnished to the Principal Commissioner or the Commissioner, as the case may be, notified under sub-section (1) of section 199G:-

-Electronically under digital signature , or

-Through transmission of data electronically under Electronic Verification Code, or

-In print form.

Page 6: PRADHAN MANTRI GARIB KALYAN YOJANA

Procedure for Declaration under PMGKY..

The Principal Commissioner or The Commissioner, as the case may be shall issue a certificate in Form-2 to the declarant within 30 days from the end of the month in which a valid declaration under sub-section (1) of section 199C has been furnished.

If any person, having furnished a declaration under sub-rule (2), discovers any omission or any wrong statement therein, he may furnish a revised declaration on or before the date notified for filing declaration under sub section (1) of section 199C.

Page 7: PRADHAN MANTRI GARIB KALYAN YOJANA

Forms Form I :- Certificate of Holding “PRADHAN MANTRI

GARIB KALYAN DEPOSIT SCHEME,2016” Form II:- Application Form for “PRADHAN MANTRI

GARIB KALYAN DEPOSIT SCHEME,2016” Form III:-Nomination Form IV:-Cancellation of Nomination Form V:-Form for Reporting Under “PRADHAN MANTRI

GARIB KALYAN DEPOSIT SCHEME,2016” Form 1:- Form of declaration under section 199C of the

Finance Act, 2016, in respect of the Taxation and Investment Regime for “PRADHAN MANTRI GARIB KALYAN YOJANA RULES, 2016”

Form 2:- Certificate of declaration under section 199C of the Finance Act, 2016, in respect of the Taxation and Investment Regime for “PRADHAN MANTRI GARIB KALYAN YOJANA RULES, 2016”

Page 8: PRADHAN MANTRI GARIB KALYAN YOJANA

Declaration should be made with payment and deposit proof

It is essential for the Declarant to file a Form-1 and then verify it according to the rules and regulation prescribed by the government.

The declaration will also be submitted with proper evidence i.e. Proof of Total Payment of Taxes, Surcharge & Penalty And Proof of deposit in Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

After such procedure, if one is found to have the unaccounted money with them then Declarant will be charged with higher tax.

Page 9: PRADHAN MANTRI GARIB KALYAN YOJANA

Eligibility Of Deposits

The deposit under this scheme shall be made by any person who intends to declare undisclosed income under sub-section (1) of section 199C of Income Tax Act, 1961 as specified in Chapter IXA i.e. “Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016” of The Taxation Laws (Second Amendment) Act, 2016.

Page 10: PRADHAN MANTRI GARIB KALYAN YOJANA

Effective Date Of Deposit

The effective date of opening of the “Bonds Ledger Account” shall be the date of tender of cash or the date of realisation of draft or cheque or through electronic transfer.

Ques: What is a Bonds Ledger Account?

Ans: A BLA or Bond Ledger Account means an account with RBI or an agency bank in which the Government securities are held in a dematerialized form to the credit of the holder. The investor in this case receives a Certificate of Holding or Certificate of Investment from RBI/Agency Banks.

Page 11: PRADHAN MANTRI GARIB KALYAN YOJANA

Form of the Deposits

The deposits shall be held at the credit of the declarant in “Bonds Ledger Account” maintained with the Reserve Bank of India.

A certificate of holding the deposits shall be issued to declarant in Form I.

The Reserve Bank of India shall transfer the deposit received under this scheme into the designated Reserve Fund in the Public account of the Government of India.

Page 12: PRADHAN MANTRI GARIB KALYAN YOJANA

Applications

An application for the deposit under PMGKD scheme is to be made in Form II clearly indicating the Amount, Permanent Account Number, Bank Account Details (for receiving redemption proceeds), and Address of the declarant. 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 application under above paragraph shall be accompanied by an amount which shall not be less than 25% of the undisclosed income to be declared in the form of cash or draft or cheque or through electronic transfer.

Page 13: PRADHAN MANTRI GARIB KALYAN YOJANA

Subscription & Mode of Investment in the

Bonds Ledger Account The deposits can be made at the Authorised Banks notified

by Government of India.

The deposits should be in multiples of Rupees one hundred (100).

The deposit under sub-sec(1) of sec 199F by a declarant shall not be less than 25% of the undisclosed income to be declared under sub-sec(1) of section 199C of the act.

The entire deposit to be made under sub-sec(1) of sec 199F under this scheme shall be made, in a single payment, before filling declaration under sub sec(1) of sec199C in Form-1.

The deposit shall be made in the form of cash or draft or cheque or by electronic transfer and shall be drawn in favour of the Authorised Bank accepting such deposit.

Page 14: PRADHAN MANTRI GARIB KALYAN YOJANA

Authorised Banks

Application for the deposit in the form of Bonds Ledger Account shall be received by any Banking Company to which the Banking Regulation Act, 1949(10 of 1949) applies.

The authorised bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.

The authorised bank shall upload the details of deposit into Reserve Bank of India’s core banking solution ‘e-kuber’.

The Reserve Bank of India and authorised bank shall maintain the confidentiality of the data received in this regard.

Page 15: PRADHAN MANTRI GARIB KALYAN YOJANA

Effects of Valid Declaration Where a valid declaration has been made then the

following consequences will follow:- 1) The amount of undisclosed income declared shall not be

included in the total income of the declarant under the Income-Tax Act for any Assessment year.

2) A declarant under this scheme shall not be entitled, in respect of undisclosed income or any amount of tax and surcharge paid thereon, to re-open any assessment or re-assessment made under the Income tax Act or Wealth Tax Act,1957, or to claim any set off or relief in any appeal, reference or other proceeding in relation to any such assessment or re-assessment.

3) The contents of the declaration shall not be admissible in evidence against the declarant for the purpose of any proceeding under any Act other than the Acts on which this scheme is not applicable.

Page 16: PRADHAN MANTRI GARIB KALYAN YOJANA

Circumstances where Declaration shall be Invalid The declaration shall be void and shall be deemed never to

have been made where a declaration has been made by:-

a) Misrepresentation, or

b) Suppression of facts, or

c) Without payment of tax and surcharge, or

d) Penalty , or

e) Without depositing the requisite amount in the PMGKY Deposit Scheme.

And in such cases all the provisions of the Income Tax Act, including penalties and prosecutions, shall apply accordingly.

If declaration shall be void then any tax and surcharge paid under this scheme shall not be refundable.

Page 17: PRADHAN MANTRI GARIB KALYAN YOJANA

Nomination

A sole holder or a sole surviving holder of a Bonds Ledger Account, being an individual, may nominate in Form III, one or more persons who shall be entitled to the Bonds Ledger Account and the payment thereon in the event of his death.

Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds Ledger Account shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.

A nomination made by a holder of Bonds Ledger Account may be varied by a fresh nomination, or may be cancelled by giving notice in writing to the Authorised Bank in Form IV.

Every nomination and every cancellation or variation shall be registered at the Reserve Bank of India through the authorised bank and shall be effective from the date of such registration.

If the nominee is a minor, the holder of Bonds Ledger Account may appoint any person to receive the Bonds Ledger Account or the amount due in the event of his death.

Page 18: PRADHAN MANTRI GARIB KALYAN YOJANA

Transferability

Bonds Ledger Account is a Non-Transferable Account and cannot be gifted or transferred to a relative or a friend.

Except:-

The transferability of the Bonds Ledger Account shall be limited to nominee or to the legal heir of an individual holder, in the event of his death.

Page 19: PRADHAN MANTRI GARIB KALYAN YOJANA

Repayment

The Bonds Ledger Account shall be repayable on the expiration of Four years from the date of deposit and redemption of such Bonds Ledger Account before its maturity date shall not be allowed.

The redemption amount will be credited to the bank account furnished by the person in the application form.

In case there are changes in any details, such as account no., email id etc. Then the investor must intimate Reserve Bank of India, through the authorized bank promptly.

Page 20: PRADHAN MANTRI GARIB KALYAN YOJANA

Tax on

Income

Declared-

30%

Surcharge on

Tax @33%

i.e.10%

Penalty on

Income Declared-

10%

Amount

locked in for

4 Years- 25%

Remaining

Amount-

25%

If Income Declared Under PMGKY

Page 21: PRADHAN MANTRI GARIB KALYAN YOJANA

Rs. 10 Lakhs Example

Undisclosed income in hand Rs. 10 lakh, Tax @ 30% of income i.e. Rs. 300000, Surcharge named as Pradhan Mantri Garib Kalyan

Cess @ 33% of Tax i.e. Rs. 99000, Penalty @ 10% of income Rs. 100000, Total amount payable (tax+ surcharge+ penalty) is Rs.

499000, Total amount going into interest free deposit for 4

years is Rs. 250000, Total amount of undisclosed income left in hand now

is Rs. 251000 or Rs. 250000, Net amount declarant gets to keep after 4 years is Rs.

501000 or Rs. 5.01 lakhs.

Page 22: PRADHAN MANTRI GARIB KALYAN YOJANA

If Income Not Declared Under PMGKY

Non declaration of undisclosed cash or deposit in accounts under the scheme will render such undisclosed income liable to tax, surcharge and cess totaling to 77.25% of such income,if declared in the return of income.

In case the same is not shown in the return of income a further penalty @ 10% of tax shall also be levied followed by prosecution.

The provisions for levy of penalty for misreporting of income @200% of Tax Payable under section 270Aof the Income Tax Act have not been amended and shall continue to apply with respect to cases falling under the said section.

The penalty provisions in respect of search & seizure cases has also amended in the Taxation Laws (Second Amendment) Act, 2016. If the income is admitted and taxes are paid then penalty will be 30% of income. Otherwise a penalty @60% of income shall be levied.

Page 23: PRADHAN MANTRI GARIB KALYAN YOJANA

Example If Income Not Declared Under PMGKY

If declared while filing Return of Income:-

Undisclosed income declared in the return Rs.10 lakh Tax and surcharge @ 77.25% i.e. Rs.772500, Net amount left in the hand is Rs. 227500.

If not declared while filing Return of Income and take

chance of being caught by department then:- Tax and surcharge will be @ 77.25% i.e. Rs. 772500 Penalty @ 10% of Tax i.e.Rs.60000, Total tax, surcharge & penalty will be Rs. 832500 i.e. 83.25% of

undisclosed income. And further prosecution proceedings may be launched against

the assessee. So, Net Amount left in hand is Rs. 167500.

Page 24: PRADHAN MANTRI GARIB KALYAN YOJANA

FAQ’s Q1. Who will provide other services to the declarant

after deposit in the scheme ?

Ans: The Banks through which the deposit into this scheme was made, will provide other customer services.

Q2. Which assets can be declared under this scheme ?

Ans: The declaration of undisclosed income under this scheme can be only in the form of Cash or deposits in an account maintained by the person with Reserve Bank of India, any banking company or co-operative bank to, Post office or any other entity notified by Govt.

Page 25: PRADHAN MANTRI GARIB KALYAN YOJANA

Q3. Who can opt for this scheme and who cannot?

Ans: Any Individual, HUF, Firms, LLP, Society, Trust, Companies, AOP, BOI, etc.

The scheme is not applicable on the following: 1) In respect of whom an order of Detention has been made under

COFEPSA ACT, 1974 and not set aside by competent court. 2) In relation to prosecution for any offence under chapter IX and XVII of

Indian Penal Code, The Narcotic Drugs and Psychotropic Substances Act, 1985, The Unlawful Activities (Prevention) Act, 1967, The Prevention of Corruption Act, 1988, The Prohibition of Benami Transactions Act, 1988 and The Prevention Of Money laundering Act, 1992.

3) To any person notified under Sec. 3 of the Special Court (Trial of Offences relating to Transaction in Securities) Act, 1992.

4) In relation to any undisclosed Foreign Income and Asset which is chargeable to tax under the Black Money ( Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

FAQ’s…

Page 26: PRADHAN MANTRI GARIB KALYAN YOJANA

Q4. To whom declaration to be made ?

Ans: To the Principal Commissioner or the Commissioner notified in the Official Gazette for this purpose.

Q5. Can declaration of any Foreign assets, deposit or Foreign bank deposit be made ?

Ans: NOT permitted as per the proposed legislation.

Q6. Can expenses be claimed from the undisclosed income ?

Ans: No deduction of any allowances/ expenditures set off of any loss is allowed from the income under declaration.

FAQ’s…

Page 27: PRADHAN MANTRI GARIB KALYAN YOJANA

Q7. When the Taxes and deposits under this Scheme required to be paid ?

Ans: All the Taxes, penalty and the Deposits under this Scheme are required to be paid before filing of Declaration under this Scheme and proofs of payments to be filed with it. Without these the declaration is void.

Q8. Can Tax/surcharge/penalty be refunded ?

Ans: NO-these are NON-Refundable

Q9. Are Declaration under this Scheme secret as under IDS,2016 ?

Ans: NO

FAQ’s…

Page 28: PRADHAN MANTRI GARIB KALYAN YOJANA

Q 10. No Reopening of Assessment? Ans: A declarant under this Scheme shall not be entitled, in respect of

undisclosed income referred to in section 199C or any amount of tax and surcharge paid thereon, to re-open any assessment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment.

Q 11. Will any interest be paid on the deposit under the scheme? Ans: The deposits under sub section (1) of section 199F shall not bear any

interest.

Q 12. Can the BLA be gifted/transferred to a relative or friend on some occasion?

Ans: No, the BLAs cannot be gifted/transferred to any relative or friend. Transferability of the Bond Ledger Account shall be limited to nominee or to the legal heir of an individual holder, only in the event of death of the declarant.

FAQ’s…

Page 29: PRADHAN MANTRI GARIB KALYAN YOJANA

Questions from Circular No.2 of 2017 Q.1. Which deposits can be declared?

Ans: Any form of deposits maintained with a Bank or Post Office like:-

Savings Account

Current Account

Recurring Deposit Account

Fixed Deposits

Senior Citizen Savings Scheme

Monthly Income Scheme

Jan-Dhan Yojana Account

Can be Declared under the PMGKY.

Q.2. Whether declaration under the scheme can be made in respect of income which is represented in the form of investment in any asset like jewellery, stock or immovable property?

Ans. No under the scheme, only income represented in the form of cash or deposit in an account maintained with specified entity can be declared. The scheme is hence not available for declaration of an income which is represented in the form of assets like jewellery, stock or immovable property.

Page 30: PRADHAN MANTRI GARIB KALYAN YOJANA

Q.3. In case a deposit is made by interbank transfer i.e. transfers from one account to another account whether such deposit can be declared under the Scheme ?

Ans: Yes, a declaration under the scheme can be filed in respect of deposits made in an account maintained with a specified entity by any mode such as cash, cheque, RTGS, NEFT, or any electronic transfer system.

Q.4. Where a notice u/s 142(1), 143(2), 148, 153A, 153C of the Income Tax act has been issued to a person for an assessment year, will such person be eligible for making a declaration under the scheme?

Ans: Yes, such person is eligible to avail the scheme subject to fulfillment of conditions specified in the scheme.

Questions from Circular No.2 of 2017…

Page 31: PRADHAN MANTRI GARIB KALYAN YOJANA

Q.5. Can a person against whom a search/ survey operation has been initiated, file declaration under the scheme and whether the cash seized during search operation can be declared under the scheme?

Ans: Yes, a person against whom a search/ survey operation has been initiated is eligible to file declaration under the scheme in respect of undisclosed income represented in the form of cash or deposit in an account maintained with specified entity.

Q.6. Whether credit of advance tax paid, tax deducted at source (TDS), tax collected at source (TCS), in respect of an income declared under the scheme would be available?

Ans: No credit for advance tax paid, TDS or TCS shall be allowed under the scheme.

Questions from Circular No.2 of 2017…

Page 32: PRADHAN MANTRI GARIB KALYAN YOJANA

Q.7. Whether undisclosed income represented in the form of deposits in foreign bank account is eligible for the scheme?

Ans: Clause (d) of sec 199-O of the scheme provides that the scheme shall not apply in relation to any undisclosed foreign income and assets which is chargeable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Hence, undisclosed income represented in the form of deposits in foreign bank account is not eligible for the scheme.

Q.8. Can a person come under the scheme with respect to deposit made in a bank account prior to the Financial Year 2016-17?

Ans: A person can avail the scheme for any Assessment year commencing on or before the 1st day of April,2017. Hence deposits made in bank account prior to F.Y. 2016-17 can also be declared under the scheme.

Questions from Circular No.2 of 2017…

Page 33: PRADHAN MANTRI GARIB KALYAN YOJANA

Q.9. If a person does not declare undisclosed cash deposited in an account between 01.04.2016 to 15.12.2016 under the scheme, then whether such undisclosed deposit shall attract tax at the rate provided in the Taxation Laws ( Second Amendment) Act, 2016?

Ans: The amended provisions of Sec. 115BBE of the Income Tax Act, 1961 shall apply to A.Y. 2017-18, relating to F.Y. 2016-17. Hence, undisclosed deposits between 01.04.2016 to 15.12.2016 shall also attract tax at the rate provided in the Taxation Laws ( Second Amendment) Act, 2016.

Q.10. Whether undisclosed income deposited/ repaid in an Overdraft Account or Cash Credit Account or any loan account maintained with a bank is eligible for being declared under the scheme?

Ans: Yes, the amount deposited or repaid against an Overdraft Account or Cash Credit Account or any loan account maintained with a bank or any specified entity is eligible for being declared under the scheme.

Questions from Circular No.2 of 2017…

Page 34: PRADHAN MANTRI GARIB KALYAN YOJANA

Q.11. Whether the cash seized during a search and seizure action of the Department and deposited in Public Deposit Account is allowed to be adjusted against the payments required to be made under the scheme?

Ans: The adjustment of cash seized by the Department and Deposited in the Public Deposit Account may be allowed to be adjusted for making payment of tax, surcharge and penalty under the scheme on the request of the person from whom the cash is seized. However, the said amount shall not be allowed to be adjusted for making deposits under the Pradhan Mantri Garib Kalyan Deposit Scheme.

Q.12. Person ‘A’ made an advance in cash for procurement of goods (other than immovable property) or services to person ‘B’. Person ‘B’ deposits this amount in his bank account. Person ‘B’ subsequently returns this amount to Person ‘A’ in cash or through digital means as the purpose for which advance was made did not materialise. Can person ‘A’ declare this amount under the scheme? Whether penalty u/s 271D or 271E shall be attracted in the case of person ‘B/?

Ans: Yes, person ‘A’ is eligible to declare the said amount under the scheme. Since the advance was made for procurement of goods (other than immovable property) or services, no penalty under sec. 271D or 271E of the act shall be attracted in respect of the said transactions.

Questions from Circular No.2 of 2017…

Page 35: PRADHAN MANTRI GARIB KALYAN YOJANA

Recent Provisions for Taxation & Penalty on Unexplained Credit, Investment, Cash and Other Assets

Page 36: PRADHAN MANTRI GARIB KALYAN YOJANA

S.No. Particulars Declared under Pradhan Mantri

Garib Kalyan Yojana Voluntary Declared under

Return Filing

1 Applicability Undisclosed Income in the form of Cash or deposits in an account maintained by the

person with following specified entity

All Unexplained Cash, Credit, Investment, Cash and Other Assets

2 Tax @ 30% of Undisclosed Income 60% of Unexplained cash, credit,

Investment, Cash and Other Assets u/s 115 BBE

3 Surcharge @ 33% of Tax i.e. 9.9% 25% of Tax i.e. 15%

4 Cess @ N.A. 3% OF Tax & Surcharge i.e. 2.25%

5 Penalty@ 10% of Undisclosed Income No Penalty u/s 271AAC

6 Total

Tax+Surcharge+Cess+Penalty 49.90% 77.25%

7 Deposit 25% of declared income to be deposited in Interest Free Deposit Scheme for 4 years

N.A.

8 Prosecution Proceedings No Prosecution Proceedings No Prosecution Proceedings and no

penalty will be levied for under reporting and mis-reporting of income

9 Penalty u/s 271AAB No Penalty levied No Penalty levied

10

Example

Undisclosed Income is Rs. 10 lakh, So, Tax will be Rs. 3 lakh and Surcharge of Rs. 99000 and Penalty will be Rs. 100000

Total is Rs. 499000 which is 49.9% of undisclosed income.

Rs 2.5 lakh will be locked in for 4 years without accruing any interest.

Undisclosed Income is Rs. 10 lakh, So, Tax will be Rs. 6 lakh and

Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty will be NIL.

Total is Rs. 772500 which is 77.25% of undisclosed income.

11 Total Liability 49.90% 77.25%

Page 37: PRADHAN MANTRI GARIB KALYAN YOJANA

S.No. Particulars Not Declared by Assessee in Return of Income But

Determined by AO

1 Applicability Undisclosed Income in the form of Cash or deposits in an account

maintained by the person with following specified entity

2 Tax @ 60% of Undisclosed Income u/s 115 BBE

3 Surcharge @ 25% of Tax i.e. 15%

4 Cess @ 3% OF Tax & Surcharge i.e. 2.25%

5 Penalty@ 10% on tax i.e 6% of Undisclosed Income u/s 271AAC

6 Total Tax+Surcharge+Cess+Penalty 83.25%

7 Deposit N.A.

8 Prosecution Proceedings No Prosecution Proceedings

9 Penalty u/s 271AAB No Penalty levied

10

Example

Undisclosed Income is Rs. 10 lakh, So, Tax will be Rs. 6 lakh and Surcharge of Rs. 1.5 lakh, Cess of

Rs.22500 and Penalty will be Rs 60000. Total is Rs. 832500 which is 83.25% of undisclosed income.

11 Total Liability 83.25%

Page 38: PRADHAN MANTRI GARIB KALYAN YOJANA

S.No. Particulars Not declared but search & seizure held

1 Applicability All Unexplained Cash, Credit, Investment, Cash and Other Assets

2 Tax @ 60% of Undisclosed Income u/s 115 BBE

3 Surcharge @ 25% of Tax i.e. 15%

4 Cess @ 3% OF Tax & Surcharge i.e. 2.25%

5 Penalty@ No Penalty u/s 271AAC

6 Total

Tax+Surcharge+Cess+Penalty 77.25%

7 Deposit N.A.

8 Prosecution Proceedings Prosecution Proceedings will be there

9 Penalty u/s 271AAB Penalty LEVIED

Found during a Raid

Person Admits Tax Evasion At the time of raid

Does Not Admits at the time of Raid

Penalty @ 30% of Income will be levied

Penalty @ 60% of Income will be levied

10

Example

Undisclosed Income is Rs. 10 lakh, So, Tax will be Rs. 6 lakh and

Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty u/s 271AAB of

Rs. 3 lakh. Total is Rs.1072500 which is 107.25%

of undisclosed income.

Undisclosed Income is Rs. 10 lakh, So, Tax will be Rs. 6 lakh and

Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty u/s 271AAB

of Rs. 6 lakh. Total is Rs.1372500 which is

137.25% of undisclosed income.

11 Total Liability 107.25% 137.25%

Page 39: PRADHAN MANTRI GARIB KALYAN YOJANA

An Effort By:

CA Kirti Fatehpuria Ramanand Goyal & Co. Chartered Accountants

+919602796993 [email protected] www.rngca.com