SME Times News Bureau | 19 Jan, 2017
The government on Wednesday
clarified that only unaccounted domestic cash holding can be declared
under the new tax evasion amnesty scheme announced after
demonetisation and not jewellery, stocks, immovable property or
overseas accounts.
"The Scheme is hence not available for
declaration of an income which is represented in the form of assets
like jewellery, stock or immovable property," the government
said by way of a second set of frequently asked questions (FAQs) on
the Pradhan Mantri Garib Kalyan Yojana (PMGKY) announced in
November.
"Only income represented in form of cash or
deposit in an account can be declared," it said.
Under
this scheme, undisclosed income deposited in any bank or post office
account can be declared by paying 50 per cent of the amount in taxes
and surcharges. Besides, a quarter of the total sum is to be put in a
non-interest bearing deposit for four years.
The Central Board
of Direct Taxes (CBDT) said that a person "against whom a
search/survey operation has been initiated is eligible to file
declaration under the Scheme".
"Undisclosed income
represented in the form of deposits in foreign bank account is not
eligible for the Scheme."
CBDT said a declaration under
the PMGKY scheme can be filed in respect of deposits made in an
account maintained with an specified entity by any mode such as cash,
cheque, RTGS, NEFT or any electronic transfer system.
No
credit for advance tax paid, TDS or TCS will be allowed under the
scheme.
"A person can avail the scheme for any assessment
year commencing on or before April 1, 2017. Hence, deposits made in
bank account prior to financial year 2016-17 can also be declared
under the Scheme," it said.
Announced following the
government decision to scrap Rs 500 and Rs 1,000 notes, PMGKY
commenced on December 17, 2016 and will remain open till March 31,
2017.