Undisclosed Income :- PMGKY vs. Voluntary disclosure under Sec. 115BBE

By | December 4, 2016
(Last Updated On: December 4, 2016)

Disclosure under PM Garib Kalyan Yojna vs. Voluntary disclosure under Sec. 115BBE

Sr. No.Points of comparisonProposed PMGKY SchemeProposed on-tap voluntary disclosure scheme u/s 115BBE of Income-tax Act, 1961
1.Duration of SchemeOne-Time window – Limited duration. Last date to be notifiedOn-tap scheme to be available with effect from AY 2017-18. No expiry date to avail. Will be available till section again amended/omitted/made non-operative
2.What can be declaredUndisclosed income for AY 2017-18 or prior assessment yearsUndisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D
3.Nature of undisclosed income that can be declaredUndisclosed income in the form of cash (whether demonetized notes or legal tender) & deposits in accounts with banks/post offices/RBI/other notified entitiesUndisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D, whether they are in the form of jewellery, bullion, valuables, undisclosed investments, unexplained cash credits, hundi transactions otherwise than through account payee cheque, unexplained expenditure
4.Definition of ‘undisclosed income’Cash or deposits with specified entities are Undisclosed income under the Scheme to the extent the build-up of this wealth stock cannot be satisfactorily explained by tax free incomes or declared income or liabilities.Undisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D
5.Manner of disclosureDeclaration in form to be notifiedIn ITR
6.PaymentsTax, cess and penalty @ 49.9% of undisclosed income; Deposit in non-transferable, non-interest-bearing PMGKY locked in for 4 years bonds : @ 25% of undisclosed incomeTax, Surcharge & Education cess totalling to 77.25% to 83.25 of undisclosed income shown in ITR
7.Deadline for paymentTo be notifiedOn or before 31st March of relevant previous year
8.Applicability of interest under section 234A/234B/234CNot applicableApplicable in appropriate cases
9.Whether undisclosed income in form of proceeds of crime can be declared?No.Yes
10.Use of declaration for Wealth-tax proceedings of past yearsSecrecy under section 138 of Income-tax Act, 1961, applicable except for Acts specified in section 199-O of Finance Act, 2016Past wealth-tax matters can be opened based on declaration

New Tax Rates on undisclosed income in India -Taxation Bill 2016

Key Points -Pradhan Mantri Garib Kalyan Yojana 2016 -Tax on Black money

Lok Sabha Passed Bill to Tax Black Money / Undisclosed Income 29.11.2016

The Taxation Laws (Second Amendment) Bill, 2016 28.11.2016

Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016

New Taxation Bill to tax undisclosed income introduced in Lok Sabha by India -PMGKY  -Govt Press Release 28.11.2016

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