- The new income disclosure scheme gives tax evaders another chance to come clean on black money.
- The second such income disclosure scheme brought in by the government this year, and the first after the cancellation of old high-value banknotes on 8 November, gives tax evaders another chance to come clean.
- The first scheme closed on 30 September. The new IDS was notified along with other provisions of the Taxation Laws (Second Amendment) Act, 2016.
Example of Tax on Undisclosed Income Under PMGKY
Eligibility for Deposits
The deposits under this Scheme shall be made from the 17th day of December, 2016 till 31st day of March, 2017, by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
Subscription and Mode of deposits
- The deposits shall be accepted at all the authorised banks notified by Government of India.
- The deposits shall be made in multiples of rupees one hundred.
- The deposit under sub-section (1) of section 199F by a declarant shall not be less than 25% of the undisclosed income to be declared under sub-section (1) of section 199C of the Act.
- The entire deposit to be made under sub-section (1) of section 199F under this Scheme shall be made, in a single payment, before filing declaration under sub-section (1) of section 199C.
- The deposit shall be made in the form of cash or draft or cheque or by electronic transfer and shall be drawn in favour of the authorised bank accepting such deposit.
- The effective date of opening of the Bonds Ledger Account shall be the date of tender of cash or the date of realisation of draft or cheque or transfer through electronic transfer.
- An application for the deposit under this Scheme shall be made in Form II clearly indicating the amount, full name, Permanent Account Number “PAN”, Bank Account details (for receiving redemption proceeds), and address of the declarant.
- If the declarant does not hold a PAN, he shall apply for a PAN and provide the details of such PAN application along with acknowledgement number.
A sole holder of a Bond Ledger Account, being an individual, may nominate in Form III, one or more persons who shall be entitled to the Bonds Ledger Account and the payment thereon in the event of his death.
The deposit under sub-section (1) of section 199F shall not bear any interest.
Tradability against Bonds
The Bonds Ledger Account shall not be tradable.
The Bonds Ledger Account shall be repayable on the expiration of four years from the date of deposit and redemption before its maturity date shall not be allowed.
Download Form I and Form II: Click here.
For More Info: www.incometaxindia.gov.in