Govt to notify scheme for taxing black money holders this week

NEW DELHI: Government is likely to notify this week the scheme giving tax dodgers another chance to come clean by paying 50 per cent of tax on junked currency deposited in banks post demonetisation.

The Pradhan Mantri Garib Kalyan Yojana (PMGKY) provides for 50 per cent taxes and surcharge on declarations of unaccounted cash deposited in banks. Declarants also have to park a quarter of the total sum in a non-interest bearing deposit for four years.

The Department of Revenue will by the end of the week notify PMGKY 2016, which was a part of ‘The Taxation Laws (Second Amendment) Bill, 2016’ and was approved by the Lok Sabha on November 29.

“The notification will provide details as to how declarations are to be made (format) and the manner of paying taxes, whether in instalments or in full. It will also provide an end date to the PMGKY scheme,” an official said. ‘The Taxation Laws (Second Amendment) Bill, 2016’ was introduced in the Lok Sabha as a Money Bill which necessarily does not require assent of the Upper House of Parliament.

Constitution provides that the Rajya Sabha is required to return a Money Bill passed by Lok Sabha within a period of 14 days from the date of its receipt. The period of 14 days is computed from the date of receipt of the Bill in the Rajya Sabha Secretariat, which is November 30 in this case.