Moneycontrol
Mar 27, 2017 07:11 PM IST |

As PM scheme's deadline nears, Tamil Nadu man deposits Rs 246 crore in old notes

The man, whose identity is not yet revealed, deposited the cash in an Indian Overseas Bank branch under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).

As PM scheme's deadline nears, Tamil Nadu man deposits Rs 246 crore in old notes

Moneycontrol News

There are many in India who have deep pockets and the names of such people come out in the open only when the government takes action. After the government’s move to ban old notes of Rs 500 and Rs 1,000 last November, the Richie Riches flying under the radar have been gaining prominence.

One of them was Mahesh Shah from Gujarat, who had declared Rs 13,860 crore of undisclosed wealth under the government's Income Declaration Scheme.

Another case has now been reported in Tamil Nadu, where an individual has deposited Rs 246 crore of cash in old notes, reports DNA.

The man, whose identity is not yet revealed, deposited the cash in an Indian Overseas Bank branch under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).

What is the PMGKY scheme?

In an effort to encourage people to deposit their undisclosed money, the government launched the PMGKY scheme. Under this scheme, individuals will have to pay 49.9 percent as tax and 25 percent of the money will be kept by the government without any interest.

The breakup of the 49.9 percent includes 30 percent of the undisclosed amount as tax and a surcharge called Pradhan Mantri Garib Kalyan Cess, calculated at 33 per cent of the tax.

Another 10 percent is charged as penalty.

What are the other options?

If individuals or entities disclose their black money while filing income tax returns, then that will result in levy of 77.25 percent in taxes and penalty.

If the option of both scheme and return is not taken up, then an individual will have to worry for an additional 10 percent tax and also prosecution.

When will the final figures be known?

The scheme ends on March 31 and the the Income Tax department has said that it will declare the final number of individuals and companies who have come on board after April 1. Along with this, data for total amount of tax paid and total deposits made will be declared.
X
Sections
Follow us on
Available On