Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016 – Full Details

After the failure of Income Declaration Scheme (IDS), under which a four-month window has been opened to declare income till 30 September 2016 and such people will need to make the payment for tax and penalty in three installments by September 30, 2017. The first installment of 25 per cent tax till being paid till November 2016.

Pradhan Mantri Garib Kalyan Yojana

But now Govt of India has launched Pradhan Mantri Garib Kalyan Yojana 2016, under which the rate is double at 50 percent and a quarter of the income decalred will be ceased for four year by the government.

The locked amount will be used in schemes of education, primary heath, housing, infrastructure, irrigation, toilets, and livelihood.

Under the Pradhan Mantri Garib Kalyan Yojana, a person will have to make a declaration under following three steps.

1. Declaration about cash or deposits

After ban on old notes of 500/- and 1000/-, People have no choice ultimately they have to deposit at bank or post office. After depositing the money, a person will be able to take advantage of the scheme.

2. Pay taxes and make the deposit

After completing the deposit process, such people have to pay 30 per cent tax on income, 33 per cent surcharge on tax, 10 per cent penalty on income totaling to nearly 50 per cent of the declared income.

While under the Pradhan Mantri Garib Kalyan Deposit Scheme 2016, money will be blocked for four years and interest will be paid on it accordingly.

3. Make the declaration along with payment, deposit proof

After completing above processes, such people will have to declare his income through a declaration to the Principal Commissioner or the Commissioner notified in the Official Gazette.

The amount of undisclosed income that will be declared under Pradhan Mantri Garib Kalyan Yojana scheme shall not be included in the total income of the declarant for any assessment year under the Income-Tax Act.