New Black money disclosure law announced by Indian Government Pradhan Mantri Garib Kalyan Yojana 2016 in the wake of high deposits in cash due to demonetization of Rs.500/= and Rs.1000/= currency notes.

1. ALL YOU WISH TO KNOW ABOUT “TAXATION AND INVESTMENT
REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJANA ,
2016”
Compiled By Ca. Sanjay Gupta, B.Com(H) SRCC, FCA, ICAI( International Tax)
Mobile: 9311025900 email: sanjay@sanjayramshanker.com
Website: www.sanjayramshanker.com
1. Date of starting of the
Scheme
The date yet to be notified by Govt in Official
Gazette. Till date it is passed by Lok Sabha
only on 29-11-2016.
2. Who can opt for this
Scheme
Any person other than those mentioned in
item no.12 may make declaration of
undisclosed income under this Scheme . It may
be individual ,HUF, Firm, LLP, Company,
Society, Trust, AOP,BOI etc.
3. Declaration of which
assets can be made under
this Scheme
The declaration of undisclosed income under
this scheme can be only in the form of CASH or
deposits in an account maintained by the
person with Reserve Bank of India, any
banking company or co-operative bank to,
Post office or any other entity notified by Govt.
4. To whom declaration to
be made
To the Principal Commissioner or the
Commissioner notified in the Official Gazette
for this purpose.
5. Can declaration of any
Foreign assets, deposit or
Foreign bank deposit be
made
NOT permitted as per the proposed
legislation.
6. Can expenses be claimed
from the undisclosed
income
No deduction of any expenditures/allowance/
set off of any loss is allowed from the income
under declaration.
7. What is the rate of tax &
penalty under this
scheme.
The rate of tax is 30% of undisclosed income +
Surcharge @ 33% of the tax called Pradhan
Mantri Garib Kalyan Cess. Thus making the
Total tax to 39.90% .
Penalty is 10% of undisclosed income.

2. Thus making a total of 49.90% of undisclosed
income.
8. Other conditions of this
Scheme.
The person making a declaration under shall
deposit 25% of the undisclosed income in a
new deposit scheme called Pradhan Mantri
Garib kalian Deposit Scheme,2016
9. Salient features of
Pradhan Mantri Garib
kalian Deposit
Scheme,2016
1. No Interest
2. Amount can be withdrawn after 4 years
from the date of deposit
10. When the Taxes and
deposits under this
Scheme required to be
paid.
All the Taxes, penalty and the Deposits under
this Scheme are required to be paid before
filing of Declaration under this Scheme and
proofs of payments to be filed with it. Without
these the declaration is void.
11. Can
Tax/surcharge/penalty be
refunded
NO-these are NON-Refundable
12. Are Declaration under this
Scheme are secret as
under IDS,2016
NO
13. Scheme NOT to apply to 1. In respect of whom an order of detention
has been made under COFEPSA Act,1974
and not set aside by Competent Court.
2. In relation to prosecution for any offence
under Chapter IX & XVII of Indian Penal
Code, The narcotic drugs and psychotropic
Substances Act,1985, the Unlawful
Activities (Prevention) Act,1967, The
Prevention of Corruption Act,1988, The
Prohibition of Benami Property
Transaction Act,1988 and the Prevention
of Money Laundering Act,1992
3. To any person notified under Sec.3 of the
Special Court(Trial of Offences relating to
Transaction in Securities) Act,1992
4. In relation to any undisclosed foreign
income and asset which is chargeable to
tax under the Black Money (Undisclosed
Foreign income and assets) and Imposition
of Tax Act,2015
Disclaimer: This compilation is for information only. Please take proper legal advice before
acting/ relying upon it.