SHILLONG: The Chief Commissioner of Income Tax in a meeting on Friday discussed the Government’s new income disclosure scheme, Pradhan Mantri Garib Kalyan Scheme (PMGKDS), which was notified by the Centre on December 16 and is applicable to every declarant under the Taxation and Investment Regime for PMGKDS.
The scheme came into force on December 17, 2016 and shall be valid till March 31, 2017.
The features of the scheme are that declaration under it can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity. The deposits are interest free and have a lock-in period of four years.
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 per cent of such income, if declared on one return of income.
The taxation laws (Second Amendment) Act, 2016 has also amended the penalty provisions in respect of search and seizure cases.
The existing slab for penalty of 10 per cent, 20 per cent and 60 per cent of income levied under section 271 AAB has been rationalised to 30 per cent income, if the income is admitted and taxes are paid. Otherwise a penalty of 60 per cent of income shall be levied.
