Come clean on black money under PMGKY, I-T Department tells people

Warning that the black money was traceable to its holders like one's fingerprints, the Income Tax Department on Thursday asked people to come clean and pay 49.90 per cent tax on undisclosed income under Pradhan Mantri Garib Kalyan Yojana by March 31.

"Like fingerprints, your black money will lead us to you! The Income Tax Department has information about your undisclosed income and assets," it said in an advertisement in national dailies here.

Non-declaration of such undisclosed income will be liable to tax, surcharge and cess of 77.25 per cent along with penalty, prosecution and enforecement actions, the department said.

"Make your full and honest disclosure under Pradhan Mantri Garib Kalyan Yojana 2016 by March 31 to come clean and help the underprivileged," it said.

Under the PMGKY, declaration can be made by any person in the form of cash or deposits in an account with bank or a post office with tax, surcharge and penalty totalling to 49.90 per cent of the undisclosed income.

There would also be mandatory interest-free deposit of 25 per cent of the undisclosed income in Pradhan Mantri Garib Kalyan Deposit Scheme for a lock-in period of four years.

The government has ensured total confidentiality under the scheme with immunity against prosecution, except for criminal acts under the Prevention of Money Laundering Act, Narcotics Act or for holding 'benami' (proxy) properties and smuggling offences.

The income declared under the PMGKY is not taxable under the Income Tax Act, 1961.

--IANS

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