I-T to accept old notes for PMGKY

■ INCOME TAX department confirmed that old high value notes can be used till December 30 for paying taxes under the tax evasion scheme ■ THE PAYMENT of tax, surcharge and penalty under PMGKY is to be made through challan ITNS- 287

New Delhi, Dec. 22: The Income Tax department on Thursday said nowdefunct `500 and `1,000 notes can be used till December 30 for paying tax on disclosures made under the tax evasion amnesty scheme.

The government has come out with Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016, under which those with unaccounted cash were offered a chance to come clean by paying 50 per cent of it as tax, penalty and surcharge, while parking an additional 25 per cent in a non-interest bearing deposit for four years.

“It is stated that up to December 30, 2016, the payment towards tax, surcharge, penalty and deposit under the PMGKY can be made in old bank notes of `500 and `1000 denomination issued by the RBI,” a finance ministry statement said.

The PMGKY scheme opened on December 17, 2016, and people can declare unaccounted cash or bank deposits up to March 31, 2017.

The payment of tax, surcharge and penalty under the scheme is to be made through challan ITNS- 287 and the deposits are to be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, the statement added.

After the shock demonetisation of high value notes on November 8, the government allowed banned currency to be deposited in bank accounts till December 30.

The holder of unaccounted cash in `500 or `1000 notes can now deposit half of it in any of the 29 scheduled bank that are entitled to accept income tax on behalf of the government.

A quarter of the amount can be deposited in cash in the non-interest rate bearing PMGK Deposit Scheme 2016. — PTI