This is is an amnesty scheme launched by the Narendra Modi led Government of India in December 2016. Basically this is noticed that it is an invaluable scheme which is run by the Indian government. What is Pradhan Mantri Garib Kalyan Yojana ?
The scheme was notified along with the other taxation laws of second amendment act and this came into effect from 17th December 2016. In this scheme which gives an opportunity to declare confidentially all the illegal and black money and they have to pay penalty of 50 % for an unaccounted income and he has suggested that this will provide an opportunity to avoid prosecution in the world.
And there is also another additional benefit where 25 percentage of the unaccounted income which is invested in the scheme will be returned after 4 years without any type of interest.
Some of the features of this scheme
Here in the scheme any person can do declaration for their undisclosed income in the form of cash or deposits to their account with bank or post office or with any specified entity.
Any person who is going to declare any undisclosed income they have to pay 30 % tax with 10 % penalty and 33 percentage of Pradhan mantri garib Kalyan cess as a tax of which these are all of about around 50 percentages.
The amount declared under this will not be included in the total income tax act of any assessment year.
And this process will be kept confidential and there will not be any admissible evidence under any act such as wealth tax act, Central excise act, companies act, etc.
The scheme is valid from December 16, 2016 to March 31st 2017 and for the scheme the income should be declared in the form of cash or Bank deposits or in the form of jewellery stock immovable property or deposits in overseas accounts.
If the not declaring incomes under Pradhan Mantri Garib Kalyan Yojana will be attracted in the form of fine of 77.25 percentages. If suppose if the income is not shown in tax returns there will be a further 10 % penalty followed by prosecution.
This scheme was introduced to say frankly that to convert black money to White money by paying extra 50 percentage of the taxes which had been started by the central government of India by Prime Minister.
Benefits of the scheme
By this scheme the central government has planned to conduct various kinds of workshops for common and poor people.
The main objective of the scheme is to develop poor people and to bring them up from the poverty line.
By conducting workshops people will know the problem of poverty and the part of amount which is deposited by the black money holders will be used for the scheme.
The unaccounted cash is mainly used for the welfare schemes for the poor people mainly for the projects of irrigation, infrastructure, primary education, primary health, housing, toilets, etc.