Hard cash being disclosed must exist on payment date: I-T dept



Weeks before the new tax amnesty scheme closes, the government has clarified that any hard cash being disclosed must exist at the time of making payments, but the same condition is not necessary for undisclosed income held in the form of deposits.

In the latest clarification on the Pradhan Mantri Garib Kalyan Yojana, the tax department said "where the undisclosed income is represented in the form of deposits in an account maintained with a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the Scheme or furnishing a declaration under the Scheme".

However, when hard cash is being disclosed under PMGKY, its existence is necessary on the date of making payment of tax, surcharge and penalty under PMGKY. "Where the undisclosed income is represented in the form of cash, it is clarified that such cash should exist on the date of making payment of tax, surcharge and penalty under the Scheme or on the date of making deposit under the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, whichever is earlier," the tax department said.

PMGKY, which provides amnesty from prosecution on payment of a total of 50 per cent tax and penalty on unaccounted cash in hand or in bank deposits, opened on December 17, 2016 and closeson March 31, 2017. Under the PMGKY after payment of tax, 25 per cent of the unaccounted money will have to be mandatorily parked with the government for 4 years as non-interest bearing deposit.

The clarification followsrepresentations receivedby the tax departmentfrom various stakeholders seeking clarification as to whether the deposits made in bank accounts or cash in hand which are eligible for being declared under the scheme should exist on the date of filing of declaration.

Write your Comments on this Article

Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Konkanworld.com will not be responsible for any defamatory message posted under this article. Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on Konkanworld.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using Konkanworld.com will be purely at your own risk, and in no way will Konkanworld.com be held responsible. Similarly, Konkanworld.com reserves the right to edit / block / delete the messages without notice any content received from readers.

  • Konkan World
  • Stay Connected
  • Facebook Google+ Twitter YouTube

KONKAN WORLD offers accurate, up-to-date, a large collection of videos from KONKAN WORLD VIDEOS and indulge in fun you will not find else where!.
© Copyright 2014 Konkanworld media Inc