Pradhan Mantri Garib Kalyan Yojana (PMGKY) will Not Apply for Non-Cash Income

Under Pradhan Mantri Garib Kalyan Yojana (PMGKY), the center has declared the scheme is only applicable to cash or deposits in bank accounts. The central government has also made clear income in the form of jewellery, stock or immovable property will not be counted under the PMGKY scheme 2016-17.

Central Board of Direct Taxes (CBDT) had declared the news in answers to a second set of 'Frequently Asked Questions' on the Pradhan Mantri Garib Kalyan Yojana.

Now not disclosing the black money or uncounted money and using the hidden income to pay taxes will lead to 77.25% as tax and penalty. Moreover, if people will not discloses the hidden income in any case, a further 10% deduction will be added to 77.25% under PMGKY.

The scheme was earlier launched in 2016 by Pradhan Mantri Narendra Modi, under the scheme people will need to deposit the uncounted amount of their income with proper details about the source of income. In case, the person fails to provide the mean of income, he/ she will be charged 50% tax (tax will be applicable on depositing more than 2.5 lakh in account) on the deposited amount under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).

In PMKGY, tax incidence of 50% along with four-year lock on quarter of the income as the penalty. The central government also that it will return quarter of income locked after four year with genuine interest on it. After the demonetization has declared on 8^th November 2016 under Pradhan Mantri Garib Kalyan Yojana last date has now been extended till March 31 2017.

CBDT further said: "Undisclosed income represented in the form of deposits in a foreign bank account is not eligible for the scheme." A disclosure window was provided earlier for hidden money or assets abroad, which closed in September 2015.