No gold or property; only cash, deposits can be declared under PMGK

The government on Wednesday clarified that only unaccounted domestic cash holding can be declared under the new tax evasion amnesty scheme announced after demonetisation and not jewellery, stocks, immovable property or overseas accounts.

"The Scheme is hence not available for declaration of an income which is represented in the form of assets like jewellery, stock or immovable property," the government said by way of a second set of frequently asked questions (FAQs) on the Pradhan Mantri Garib Kalyan Yojana (PMGKY) announced in November.

"Only income represented in form of cash or deposit in an account can be declared," it said.

Under this scheme, undisclosed income deposited in any bank or post office account can be declared by paying 50 per cent of the amount in taxes and surcharges. Besides, a quarter of the total sum is to be put in a non-interest bearing deposit for four years.

The Central Board of Direct Taxes (CBDT) said that a person "against whom a search/survey operation has been initiated is eligible to file declaration under the Scheme".

"Undisclosed income represented in the form of deposits in foreign bank account is not eligible for the Scheme."

CBDT said a declaration under the PMGKY scheme can be filed in respect of deposits made in an account maintained with an specified entity by any mode such as cash, cheque, RTGS, NEFT or any electronic transfer system.

No credit for advance tax paid, TDS or TCS will be allowed under the scheme.

"A person can avail the scheme for any assessment year commencing on or before April 1, 2017. Hence, deposits made in bank account prior to financial year 2016-17 can also be declared under the Scheme," it said.

Announced following the government decision to scrap Rs 500 and Rs 1,000 notes, PMGKY commenced on December 17, 2016 and will remain open till March 31, 2017.