IDS-II collects ~100 crore in 15 days
Meeting held on Wednesday to clarify doubts coming from black money holders
The Pradhan Mantri Garib Kalyan Yojana, or PMGKY, also known as the Income Declaration Scheme-II (IDS-II), has collected over ~100 crore in the first fortnight, according to sources in income tax department. Usually, such schemes mostly see last-minute collections, but many black money hoarders perceive it to be the last chance being given by the government to come clean. SHRIMI CHOUDHARY writes ~
The Pradhan Mantri Garib Kalyan Yojana (PMGKY), also known as the Income Declaration Scheme-II (IDSII), has collected over ~100 crore in the first fortnight, according to sources in income tax (I-T) department.
Usually, such schemes mostly see last-minute collections, but many black money hoarders perceive it to be the last chance being given by the government to come clean. Income-tax officials say the first two months of IDS-I, had seen much smaller collections even two months after the window was opened in June 2016.
I-T sources said the collections have come from 18 cities, including Mumbai, Delhi, Kolkata, Jaipur and Ahmedabad.
The PMGKY scheme is part of The Taxation Laws (Second Amendment) Act, 2016, which was approved by the Lok Sabha last month, and is open for declarations up to March 31. The scheme is only restricted to cash and deposits with banks not declared after the demonetisation drive.
According to tax department officials, there are numerous queries, mostly related to immunity provided for black money holders who have deposited their unaccounted old currency in someone else's bank account under demonetisation drive. Under the current black money window, it is not clarified how benami deposits will be treated as such deposits or transactions falls under Benami Transactions (Prohibition) Act.
"To address the issues and challenges facing IDS-II, a meeting of senior officials of Central Board of Direct Taxes (CBDT) and various regional principal commissioners of IT department was held on Wednesday,” said a tax official.
After the meeting, CBDT also issued a set of 12 frequently asked questions (FAQs) on its website to clarify certain clauses ranging from eligibility criteria, tax rate and foreign income.
Tax officials said that ~25,000 crore cash was deposited in dormant bank accounts (inactive bank accounts) while nearly ~80,000 crore of loans were repaid in cash since November 8, 2016. Sources said that tax department expects that these dormant and benami deposits together will account for more than ~50,000 crore.
The rules under PMGJK is somewhat similar to IDS, however the tax rate is higher at 50 per cent and 25 per cent of the income will be locked for four years. The declarant shall be required to pay tax at the rate of 30 per cent of the undisclosed income, penalty of 10 per cent and a cess of 33 per cent. The government has also said that any undisclosed cash or deposits will be charged at 77.25 per cent if it is declared while filing income tax returns. And evaders, if caught, would have to pay a further penalty of 10 per cent, along with prosecution.