PMGKY last window for people with unaccounted deposits: PCIT

PCIT J&K Sangeeta Gupta chairing a meeting at Reasi on Wednesday.
PCIT J&K Sangeeta Gupta chairing a meeting at Reasi on Wednesday.

Excelsior Correspondent

JAMMU, Feb 15: Senior Principal Commissioner of Income Tax, J&K Sangeeta Gupta today held meeting in Income Tax Office, Katra and discussed features of Pradhan Mantri Garib Kalyan Yojna.
The meeting was attended by potential declarants of Reasi district and also by some prominent businessmen of Katra town in which Dharmender Gupta, Income Tax Officer, Katra apprised the audience about the salient features of the Yojna, which is going to end on March 31, 2017.
Addressing the meeting, Principal Commissioner of Income Tax said that Government has offered “last window” to people with unaccounted deposits to come clean or face stringent penalties.
“Those who declare cash deposits, made in an account with bank or post office or with a specified entity, under this scheme will be levied a charge of 50%, which breaks down into 30% tax, 33% surcharge and 10% penalty”, she said, adding “in addition to this, 25% of the amount declared will go into the non interest-bearing Pradhan Mantri Garib Kalyan Deposit Scheme for four years and part of PMGKY’s proceeds will be used for the benefit of the poor”.
She said that declarations under PMGKY will be confidential and will not be admissible as evidence under any Act—Central Excise Act, Wealth-Tax Act, Companies Act etc. and those taking advantage of this scheme will escape prosecution. “However, no immunity will be available under criminal acts mentioned in Section 199-O of the Scheme”, she made it clear.
She further said, “the Government has given the window for the declarations because we want people to voluntarily come forward and make their declarations”, adding “those who don’t take advantage of the scheme and are caught later will face up to 85% penalty, besides prosecution. Not declaring undisclosed cash or deposits in banks under the scheme now but showing it as income in the tax return form would attract higher taxes totaling to 77.25% in taxes and penalty besides prosecution”.
Principal Commissioner of Income Tax also made it clear that mere deposit of demonetised cash in an account will not make it white and Government is getting data from multiple sources and action will be taken accordingly.
“We are collecting information from all bank accounts and correlating this with existing income-tax data. So the assessees should know that their deposits in bank accounts are being watched. We are examining whether it is explained money or not. Therefore, they should come clean under this scheme which is the last window available for anyone”, she further said.
She further said that common methods of laundering such as purchase of bullion, jewellery, backdating of cash transactions, depositing cash in multiple accounts just below Rs 2.5 lakh, depositing cash in Jan Dhan, dormant and shell company accounts and use of cash for repayment of loans are all under the watch of the Income Tax Department.