PMGKY inches towards close tonight; collections not very large

Black money declarations under the PMGKY today saw a sharp rise on the last day of the scheme but the I-T department indicated that the collections till now were not as enthusiastic as the IDS that had mopped up over Rs 67,000 crore.
The Pradhan Mantri Garib Kalyan Yojna (PMGKY) was announced by the government last year, post demonetisation, for people holding black money to come clean by paying 49.9 per cent tax and penalty on the undisclosed income.
It is closing tonight.
A quarter of the total declared sum will also have to be parked in a non-interest bearing deposit for four years under the said scheme.

At a designated Income Tax department office in the national capital, officials said, hectic activity was seen and few declarations were even filed while few declarants and their advisors "expressed desire to file it online" after consulting the officers.
They said the overall declaration reports being received from across the country at the CBDT do not reflect the high numbers that was recorded after the last black money window called the Income Declaration Scheme (IDS) closed on September 30 last year.

The revised figures of actual declarations received and taken on record under IDS was stated by the government to be Rs 67,382 crore and made by 71,726 declarants.

"The PMGKY, to say, is the third black money declaration window in the last two years that has been brought for stash holders in the country to come clean. The latest scheme was specifically brought to bring under the government net black money created and generated in the immediate aftermath of the notes ban.
"We were not expecting some very huge collections under the latest window. The department will undertake very strong steps against black money holders once the window closes," a senior I-T officer said.
While a number of officials PTI talked to, refrained from giving out any numbers on the overall amount of collections received till now, a senior officer indicated it could be in the range of few thousand crores of rupees.

"The department is hopeful till the midnight. The designated department offices and online facility will receive declarations by 12 night. Last minute rush always adds to the numbers," he said.
A special team at the Central Processing Centre (CPC) in Bengaluru, which is mandated to collect online tax forms and returns, will work overnight to ensure that the declarations are received in a seamless manner and subsequently compiled to be sent to the Finance Ministry in Delhi.
The government may declare the overall results achieved and collections made under PMGKY by early next week.
A person or entity who opts for PMGKY will have to pay 49.9 per cent tax on the undisclosed income, whereas a person who does not opt for it but offers his black income in his Income Tax Returns will face a tax and penalty rate of 77.25 per cent.

The one who does not offer his stash funds under the scheme but is caught with undisclosed income in scrutiny assessment will face 83.25 per cent tax rate.
For those who do not declare their stash under the PMGKY and are raided will face 107.25 per cent tax and penalty, if they surrender thier undisclosed income during the action.
Those who do not surrender such hidden income even during searches will stand to face the highest level of penalty and tax at 137.25 per cent.
The Centre had come out with the PMGKY scheme after its decision to demonetise the two high value currency notes of Rs 500 and Rs 1,000 last year.

The scheme had commenced on December 17 last year.