Pradhan Mantri Garib Kalyan Yojana
Pradhan Mantri Garib Kalyan Yojana came in force in 2016 and it addressed the taxpayers to skip judicial proceedings by accepting their illegal or black money and paying 50% penalty on their illegal money.
The Pradhan Mantri Garib Kalyan Yojana was primarily rolled out by Prime Minister Mr. Narendra Modi in 2015 as a scheme framed to addressing the major economic issue of poverty. However, demonetization was launched by the government to overcome the wildfire of black money. For this, an amendment has been introduced in the existing Income Tax Bill and the PMGKY became part of Income-tax Laws in (Second Amendment) Act, 2016.
According to the revised amendment came in Income Tax Bill, people those who are declaring their illegal assets or (black money), they shall pay a penalty of 10%, tax at the rate of 30%, CESS under the PMGKY at the rate of 33%. After all the taxing, 25% of their undisclosed income shall be invested in the Pradhan Mantri Garib Kalyan Yojana scheme amount will be given back after 4 years with no interest.
Following is the easy maths of the Pradhan Mantri Garib Kalyan scheme for better understanding
- Percentage of Tax for undisclosed Income – 30%
- Penalty for undisclosed income – 10%
- The surcharge under PMGKY CESS – 33%
- Amount to be deposited under PMGKY – 25% of undisclosed income (returned as-is after a period of 4 years)
- Interest accumulated during deposit – Nil
Further in this new amendment people can declare only that income which is in any bank. Declaration of illegal money that is the form of stocks, deposits in overseas bank accounts, jewelry, immovable property or assets of the same category is not permitted. If a person got illegal money lying with them but never showed to government, they will have to bear a penalty 77.25% of their illegal or undisclosed income, if the same pattern is noticed in their tax returns or the income haven’t been showing up in a person’s n tax returns, this will attract serious penalty like they not only will they face prosecution but will also be paying the additional penalty of 10%.
Here are some points that shall be duly noted regarding the amendment to the Tax Bill with the involvement of the Pradhan Mantri Garib Kalyan Yojana are as follow:
- Disclosure of income under this scheme not mandatory, one can do as per his will.
- Whatever money came from this scheme will be employed to make advancements in areas of education, infrastructure, and healthcare that will be available to the economically depressed section of the society.
- Once the individuals have paid the mentioned penalty on their undisclosed income, they will be restored with all rights to their money in the future.
- Those individual does not disclose funds under the PMGKY scheme, the penalties and taxes which will be levied will be higher than the present one. The percentage of tax payable will be 60%, 25% towards the surcharge amount, both of which combine to be 75% of the undisclosed amount. Additionally, 10% of the penalty is Will also be asked to pay. Altogether making a big difference
When a person is making a declaration under the PMGKY, they must confront the sources and given steps shall be followed:
- Paying the penalties- All the levied penalties and taxes shall be paid.
- Proof of payment and deposit shall he has seen – Once the person has submitted the required taxes, penalties and made the deposit from the prescribed bank they shall complete the formalities for any further documentation that is asked to complete the process successfully.
For more information, you can go to this site and get the information from there.
Some importance Question of Pradhan Mantri Garib Kalyan Scheme
How much Extra Ration will be given to the ration cardholder? He or She will get Extra 5KG Ration and will be given for the next three months during COVID-19 lockdown.
Does the ration CardHolder need to pay anything for that extra Ration? No, it’s free of cost. They don’t need to pay any cash for that Extra Ration.
Are there any other Benefits for the ration cardholder? Yes, they will also get 1Kg pulses(Daal) free of cost for the next three months during COVID-19 lockdown.
Updated From Indian Government COVID-19
A measure of Poor People who affected by COVID-19 lockdown will provide 5KG of wheat or rice and 1KG of Pulse free provided Every Household for the next three months Also People can Take it’s in 2 installments under the Pradhan Mantri Garib Kalyan Scheme.
This Scheme Expected to Benefits around 80 crore poor people all over the Country.