Pradhan Mantri Garib Kalyan Yojana – A Brief about Income Tax amendment Bill after demonetization
Ever since, the demonetization of higher valued Indian currency notes Rs.500 and Rs.1000 implemented from November 2016, people across the nation facing lots of trouble particularly who has the black money in hand. With all the doors been locked, people who having black money in hand has no other way to depositing those to their respective bank accounts.
New Income Tax Amendment Bill Announced by Finance Minister Mr. Arun Jaitley
In order to conceal the black money, the Income-tax Act, 1961 has been revised by the NDA government. Recently, the current finance minister Mr. Arun Jaitley has announced a new form bill for income tax which is amended with the existing bill.
According to the new amendment income tax bill which is proposed by the finance minster in Lok Sabha, people who are likely to deposit their black money needs to pay 30% of tax amount and also the excess of 33% surcharge amount under Pradhan Mantri Garib Kalyan Yojana (PMGK) CESS.
With the penalty amount of 10%, now depositors needs to pay 30% tax + 33% of PMGK CESS surcharge for the undisclosed incomes. In addition to the burden, the finance minster also quoted that about 25% of the undisclosed income should be deposited under the PMGK Yojana for the 4 years without any interest rates; the undisclosed income would be calculated based on the amount which was deposited after the implementation of the Rs.500 and Rs.1000 currency demonetization.
Rule of New Income Tax Amendment Bill
Mr. Arun Jaitley the Finance Minister of currently ruling NDA government has proposed a new amendment bill on the existing income tax act in parliament. Under this new amendment bill, the finance minister clearly mentioned as the black money holders needs to be charges at a higher rate of tax on the amounts which are about to be converted white legally.
Also, the amendment bill on existing income tax block certain loopholes which are helpful for black money holders to get rid the tightness created by the current ruling NDA government on destroying black money from India. The loopholes which are blocked by the recent amendment bills along by hiking tax amount with penalties are about to carried under the sections of 115BBE, 271AAB and 271AAC.
|S.No||Things Need to Know about New Income Tax Amendment Bill||Detailed Information|
|1||New Income Tax Amendment bill Launched on||November 2016|
|2||Who Proposed this new income tax amendment bill in parliament||Finance Minister, Mr. Arun Jaitley|
|3||Amount of Tax for undisclosed Income||30%|
|4||Amount of Penalty for undisclosed Income||10%|
|5||Surcharge Amount under the name of PMGK CESS||33%|
|6||PMGK||Pradhan Mantri Garib Kalyan Cess|
|7||Amount to be deposited under PMGK for 4 years||25% of the Undisclosed Income|
|8||Any interest will be paid for the PMGK deposit||NO|
What is PMGKY?
PMGK Yojana is the scheme launched by the current Prime Minister of India on 2015 in order to offers workshop for the pro-poor families across the nation. The main motive of the scheme is to get rid of the term poverty from the India by providing effective workshop which would teach them to earn from the skill.
Last window of black money Holders in India
The Current NDA government offers the last chance which is similar to the IDS scheme for black money holders to convert their savings into a rightful one by paying certain amount of taxes and penalties. After 3 weeks of the announcement of Rs.500 and Rs.1000 demonetization the last window has been opened for the black money holders. It would be wisest and best option to regularize their holding amounts.
Here are the some facts about the last Window for Black Money Holders
- It’s the voluntary disclosure scheme disclosed by the Finance Minster of India Mr. Arun Jaitley for black money holders to change their undisclosed holdings into the disclosed holdings
- The voluntary disclosure scheme came to effect after the introduction of new income tax amendment bill proposed by Mr. Arun Jaitley in the parliament.
- The scheme PMGKY has been utilized by the finance minister as the gate way for black money holders to convert their holdings.
- The funds which are parked under the scheme of PMGKY by the black money holders will be utilized for the improvement of infrastructure, education, health care sectors of the poor people across the country.
- After paying certain tax amount along with the penalty for the undisclosed amounts declaration, the money holders will have their rights on their holdings in future.
- The declaration of the undisclosed amount under the new income tax amendment bill will be in active till the December 30th of 2016. Afterwards, the window will be shut for the black money holders in India.
- For the amounts which are not disclosed under this voluntary declaration scheme, the taxes and penalties would be higher levels (Tax amount – 60%, Surcharge Amount – 25%; in total 75% of undisclosed money). Along with that 10% of penalty would be imposed, so net amount will be 85%.
- On the other hand, for undisclosed amount captured by the income tax officials will be liable for levying 30% of tax + 50% of amount as penalty will be applicable, however, the net amount can be increased up to 200% depending upon the various scenarios.
On witnessing the actions and steps taken by the current ruling NDA government, it is pretty clear that central government lead by Mr. Narendra Modi has strong intention of blocking all black money which are blocking nation’s growth. However, if those hands are tighten against the big names in the society than it’s sure that India would be the powerful and strong country in the world in nearby future.
This is old Yojana.
Pradhan Mantri Garib Kalyan Yojana (PMGKY)
In last couple of year since the Modi government has taken the leader’s position, there are a number of schemes and plans that have been started to support the poor people of the society. However none of the plans seem to be implemented properly. Many a poor people have still not received any support or assistance under many schemes. Looking at this scenario the Modi government has initiated a poverty alleviation. The scheme is all about solving problems regarding these schemes that are still not implemented to support the weaker class of the society.
The scheme was launched officially in the month of April in the year 2015 by the Prime Minister Mr. Narendra Modi.
- The scheme namely PM Garib Kalyan Yojana was launched as a poverty alleviation program in India. In this scheme there will be a workshop that is being organised for the common people.
- The scheme will concentrate on the single agenda that is improvement of the weaker section of the economy. Also the schemes that are still not implemented will be discussed for further improvement as well.
- The PMGKY will be such a scheme that will include Member of Parliament in the workshop so that they can closely witness the problems regarding the implementation of the schemes each department has launched.
- Also through this scheme the MPs and other ministers can contribute some portion to enhance the standard of living of the poor and weaker community.
- The workshops will be paid workshop. People who want to join the workshop need to pay a small portion of money and then they can continue with the sessions.
- Anyone can join the scheme or attend the workshop to be part of this program. Mostly the MPs and other departmental representatives will be part of the program.
- It has been praposed that after demonitization of rs 500 and 1000 notes, a certain part of unaccounted money would be used in this scheme.
It is a poverty alleviation program. The scheme is aiming to enhance the standard of living of the poor section of the economy. So, the beneficiaries under the scheme are the poor people of the society.
- The main objective of the scheme is to improve the financial status of the poor people of the society. Also through the program the central government is willing to accelerate the failed schemes that are not implemented properly till now.
- The scheme will also aim to attract more Ministers and MPs to concentrate on the betterment of the economy. They can contribute to the scheme so that the scheme can provide proper support to the poor people.
- The program has already started and in Gujarat there are 22 districts that have hosted the program. Nearly 1.5 Lac people from the weaker section across the Gujarat state have been benefitted through the scheme.
The first workshop was taken a place on 19th April 2015. According to the reports the workshop was successful and many a people got benefitted from that. However there is no official date has announced for the implementation of the program yet.