Tarun Sharma Moneycontrol News
The Pradhan Mantri Garib Kalyan Yojana (PMGKY) is unlikely to achieve even 50 percent of its internal target of tax collection, a senior income tax official told Moneycontrol. The income tax department had internally set Rs one lakh crore as collection target for PMGKY which ends on March 31.
The I-T department now expects to collect close to Rs 25,000 crores under the scheme.
According to officials, the declarants want more time to submit the money they declared under the scheme.
"Declarants are asking us to extend the deadline for depositing money to September 30, which is also the last day to submit money under IDS. They say they have no money left with them after they pay their income taxes, advance taxes and the second tranche of IDS" said an official.
Unveiled a month after the demonetisation, the PMGKY was aimed to give another chance to individuals to disclose unaccounted money. The black money holders will be levied a charge of 50 percent on the declared amount. Another 25 percent of the amount declared will go into the non interest-bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years.
Black money holders who choose not to reveal their unaccounted income under PMGKY, will have to pay 107 percent tax if caught.
The government has kept a tight leash on black money holders, especially ones who have failed to disclose their incomes.
Finance Minister Arun Jaitley, in a Lok Sabha address on Wednesday, had said that through data mining, the Central Board of Direct Taxes (CBDT) and the income tax department found that the cash deposited by 18 lakh people did not match their income profile.
The government asked for an explanation from these individuals through SMS and emails. Only 8.71 responded. The income tax department will take action against the rest in the coming days as per the Income Tax Act, said Jaitley.
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