“A new e-mail ID created for people to give information on black money to tax authorities. People can give information about those trying to convert black money into white on this e-mail address,” said Revenue Secretary Hasmukh Adhia after the notification of PMGKY.
Payments under PMGKY will have to be made before filing a declaration.
Unlike under Income Declaration Scheme, which ended on September 30 where payment was to be made in three instalments, under the current scheme, tax, penalty and the lock-in amount will have to be paid upfront before making a declaration.
Individuals who have deposited cash from November 8 will be able to avail the scheme by going to their respective banks and filling a challan of 50 per cent tax and park 25 per cent (of the total undisclosed amount) in an interest-free deposit.
Thereafter, one will have to attach both the challan and the deposit receipt with the income declaration form and file declaration with the income tax department.
“Declarations under new black money disclosure scheme to be kept confidential, information won’t be used for prosecution,” said Adhia. Receipt of tax paid on deposits will have to be shown to avail disclosure scheme benefits including immunity from prosecution, he added.
The income tax department has made seizures worth Rs 390 crore since November 8.
“We have seized cash of more than Rs 316 crore out of which new currency is around Rs 80 crore. Jewellery is Rs 76 crore with a total seizure of Rs 390 crore and admitted concealed income on the basis of the survey about Rs 2,600 crore,” said Sushil Chandra, chairman, Central Board of Direct Taxes.
A government official pointed out that the department will run various models and algorithms on the vast pool of data that they will get. “We may look at accounts where the deposits are more than 40 per cent of an individual’s income. That criteria will be decided by a committee for assessment,” he said.
“Through these rules notified today (Friday), the government again seems to re-emphasise its aim at increasing tax base, by making PAN mandatory both for making a declaration under PMGKY 2016 as well as for making the mandatory deposit of 25 per cent in Bonds ledger account. (If PAN is not available, declarants need to apply for PAN mandatorily, under information to government, before making this declaration),” said Shailesh Kumar, director, direct taxation, Nangia & Co.