Moneycontrol
Last Updated : Jan 18, 2017 09:41 PM IST | Source: Moneycontrol.com

No stocks, property disclosure under new black money scheme

Pradhan Mantri Garib Kalyan Yojana, 2016 provides an opportunity for black money holders to disclose income in the form of cash or deposit and pay tax, surcharge and penalty totaling in all to 49.9 per cent of the declared income and an additional 25 per cent deposit in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

Moneycontrol Bureau

The Income Tax department has clarified that jewellery, stock or immovable property purchased through black money will not quality for disclosure under the Pradhan Mantri Garib Kalyan Yojana, 2016.

“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,” the Central Board of Direct Taxes (CBDT) has said in a set of clarifications released on Wednesday.

The disclosure scheme provides an opportunity for black money holders to disclose income in the form of cash or deposits in an account maintained with a specified entity and pay tax, surcharge and penalty totaling in all to 49.9 percent of the declared income. It also provides for a mandatory deposit of not less than 25 percent of such income in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

The scheme, which opened on December 17, 2016, will remain open for declarations/deposits up to March 31, 2017.

The board has clarified that a person can make declaration in respect of any income in the form of deposits in an account maintained by the person with a bank or post office in the form of saving accounts, current accounts, recurring deposit accounts, fixed deposit accounts, Public Provident Fund (PPF) Account, Senior Citizen Saving Scheme (SCSS) Account, Monthly Income Scheme (MIS) Account, Jan Dhan Yojana Accounts.

However, the scheme would not be applicable to undisclosed income represented in the form of deposits in foreign bank accounts. “The Scheme provides that it shall not apply 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. Hence, undisclosed income represented in the form of deposits in a foreign bank account is not eligible for the scheme,” the CBDT has said.

The Board has also said that a person against whom a search or 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 a specified entity.

To a query, the Board has also said in case a deposit is made by interbank transfers, 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.
First Published on Jan 18, 2017 04:56 pm
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