New Income Disclosure Scheme: Do or Die For Black Money Holders.

After PM Modi's surgical strike on black money, cases of cash crunch, money laundering, and illegal exchange of discontinued notes started to surface which led to economic fiasco. So, after analyzing the recent developments, a new scheme Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) for disclosure of unaccounted money has made its way through Lok Sabha . Pradhan Mantri Garib Kalyan Yojana, 2016 gives an opportunity to all the black money hoarders to come out clean by declaring their undisclosed income and paying heavy taxes and penalty. The provisions of scheme require declarations to pay-

Which amounts to approximately 50 % tax of the undisclosed income. Apart from paying tax and penalty, the declarants will also be required to deposit 25% of the amount disclosed in the Pradhan Mantri Garib Kalyan Yojana, which will be interest free deposits locked in for a period of 4 years. After analysing the provisions of the new scheme and the amendments made in the existing provisions of the Income Tax Law, a person holding black money is left with three options- (a)    Declaring income under PMGKY, by filling a declaration form attracting a tax of 50% (30% tax, 33% surcharge on tax, 10% penalty) and depositing an additional 25% of income in the Pradhan Mantri Garib Kalyan Yojana, 2016 (which is refundable after 4 years) 

Original Source:- http://bit.ly/2fNqhTa