Pradhan Mantri Garib Kalyan Yojana (PMGKY)
- Launched on December 2016, the Pradhan Mantri Garib Kalyan Yojana (PMGKY) is an amnesty scheme launched on the lines of Income declaration scheme. The scheme is valid till March 31, 2017.
- It was introduced by the central government after demonetization, in December 2016, with the aim to unearth black money in circulation and bring it back to the system by investing it into the welfare schemes for the poor.
- Part of the Taxation Laws (Second Amendment) Bill, 2016, PMGKY provides persons having undisclosed income in the form of cash or deposit (maintained in a bank account or post office or other specified entity) to declare such incomes after paying tax, surcharge and penalty totaling up to 49.90 % of the undisclosed income.
- Additionally, the defaulter will have to deposit 25% of the undisclosed income in the Pradhan Mantri Garib Kalyan Deposit Scheme which has a lock-in period of four years and interest will not be paid on the deposit.
- Non-declaration of such undisclosed income will be liable to tax, surcharge and cess at 77.25 % along with penalty, prosecution and enforcement actions.
- Any person who declares undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for PMGKY, 2016 is eligible to deposit unaccounted money under this scheme.
- The scheme is not available for declaration of income in the form of any asset other than cash, and deposits like jewellery, stock or immovable property.
- PMGKY allows defaulters to come clean and declarations made under the scheme will be entirely confidential and will invite no prosecution under law.
- The defaulters will be granted pardon and provided immunity as opposed to higher penalties and criminal charges if undeclared income is found under tax scrutiny or raids.
- The income declared under the scheme shall not be taxable under the Income Tax Act, 1961 or any other Acts other than those specified in Section 199-O of the scheme.
- Money generated from disclosures shall be used to improve infrastructure, initiate welfare schemes and develop rural economy. These include projects in irrigation, primary health and education, housing, toilets and livelihood for the benefit of the poor.
- PAN Card
- Aadhaar Card
- Driving License
- Voter ID Card
- NREGA Card
- Identity Card Issued by Government Department
How to Apply
- Applicants need to deposit their undisclosed money in a single payment in any of the authorized banks from 17th December 2016 till 10th May 2017 after which a certificate of holding the deposit shall be issued to declarant.
- Applicants will have to then fill the Declaration form available online at the Income Tax website by login in to their website or registering with their PAN Card. Alternatively forms can be downloaded, filled and uploaded online or printed. Forms are also available at branches of authorized banks.
- These forms need to be submitted to the Principal Commissioner or Commissioner electronically with digital signature or using electronic verification code or in print form. Additionally applicants need to provide scanned copies as proof of tax paid and deposits made under the scheme.
- Applicant will then receive a Certificate of Declaration as receipt from IT office within or after 30 days.
You can find the detailed information at:
Government of India,
Ministry of Finance,
Department of Revenue,
Central Board of Direct Taxes
Contact details of the Ministry of Finance, Department of Revenue and Central Board of Direct Taxes can be accessed here:
Any queries regarding the PMGKY scheme can be emailed at email@example.com