Those who declare cash deposits under PMGKY will be levied a charge of 50 percent. This will be classified into 30 percent tax, 33 percent surcharge and 10 percent penalty. In addition to this, 25 percent of the amount declared will go into the noninterest-bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years. This amount will be used for welfare schemes for which guidelines will be issued later.
The Government has assured that the declarations under PMGKY will be kept confidential. The disclosures also will be immune from prosecution. It also asserted that those who don’t take advantage of the scheme and are caught later with unaccounted money will face up to 85 percent penalty, along with prosecution. Not declaring undisclosed cash or deposits in banks under the scheme now but showing it as income in the tax return form would attract a total of 77.25 percent in taxes and penalty
The PMGKY scheme was notified by the Government after the Taxation Laws Second (Amendment) Bill, 2016, came into force on December 15. Most banks will have PMGKY scheme forms starting Saturday (17 December 2016. A person can avail the scheme only after payment of 50 percent tax and setting aside 25 percent of the remaining undisclosed amount for four years.
The Government of India has also set up an email address blackmoneyinfo@ incometax.gov.in to tip off the details of black money to the tax authorities. The emails will be monitored by a cell that will take immediate action based on the information.