New Delhi, January 18, 2017

Black money in jewellery, stock, property cannot be declared, says CBDT

Undisclosed income in assets such as jewellery, stock or immovable property or in foreign bank accounts will not be accepted under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).

The Central Board of Direct Taxes on Wednesday said that only undisclosed income in domestic bank accounts, post offices or stashed elsewhere will be accepted under the scheme.

“Only income represented in the form of cash or deposit in an account maintained with specified entity can be declared,” it said in a set of frequently asked questions on the scheme.

Launched on December 12 last year and open till March 31, PMGKY is a second chance available to those with undisclosed income in the defunct ₹500 and ₹1,000 notes to declare their illicit cash and pay tax, surcharge and penalty of 49.9 per cent of such income.

It also mandates a deposit of at least 25 per cent of the income in the scheme for the welfare of the poor while the balance 25 per cent can be taken out after a four-year lock-in period.

The CBDT further said bank accounts and post offices are also “specified entities” under the scheme and undisclosed income through inter bank fund transfers or parked in savings account, current account, recurring deposit account, fixed deposit account, loan account, small savings accounts like the public provident fund and Jan Dhan Yojana Account can also be declared.

It further said people who have received an income tax notice or against whom a search or survey has been carried out and cash seized can also declare such wealth under the PMGKY.

It also warned that undisclosed deposits made between January 1 and December 15, 2016 and not declared under the scheme would attract tax and penalty of nearly 85 per cent. “A person can avail the Scheme for any assessment year commencing on or before the April 1, 2017. Deposits made in bank account prior to financial year 2016-17 can also be declared under the Scheme,” said the CBDT. However, no credit for advance tax paid, TDS or TCS will be allowed under the Scheme.

[The Hindu Business Line]