The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan\u00a0Yojana, 2016 (hereinafter \u2018the Scheme\u2019) provides an opportunity to persons having\u00a0undisclosed income in the form of cash or deposit in an account maintained with a\u00a0specified entity to declare such income and pay tax, surcharge and penalty totaling\u00a0in all to 49.9 per cent. of such declared income and make a mandatory deposit of not\u00a0less than 25% of such income in the Pradhan Mantri Garib Kalyan Deposit Scheme,\u00a02016.The Scheme has commenced on 17.12.2016 and shall remain open for\u00a0declarations\/deposit up to 31.03.2017.\u00a0Queries have been received from the stakeholders seeking further clarity on\u00a0certain provisions of the Scheme. The Central Government has considered the\u00a0queries and decided to clarify the same in the form of questions and answers as\u00a0follows.-<\/p>\n
Question No.1:<\/strong> Whether the amounts deposited in an account maintained with\u00a0a bank or post office like Saving account, Current Account,\u00a0Recurring Deposit Account, Fixed Deposit Account, PPF\u00a0Account, Senior Citizen Saving Scheme Account, Monthly\u00a0Income Scheme Account, Jan Dhan Yojana Account are eligible\u00a0for being declared in the Scheme?<\/p>\n Answer:<\/strong> As per Section 199C(1) of the Scheme, a person can make\u00a0declaration in respect of any income in the form of deposit in an\u00a0account maintained by the person with a specified entity and as\u00a0per Explanation to Section 199C(2) the banks and post offices\u00a0come under the definition of specified entity. Hence, the\u00a0undisclosed income deposited in the accounts specified above\u00a0can be declared under the Scheme. Answer:<\/strong> No. Under the Scheme, only income represented in the form of\u00a0cash or deposit in an account maintained with specified entity\u00a0can be declared. The Scheme is hence not available for Question No.3:<\/strong> In case a deposit is made by inter-bank transfer i.e. transfers\u00a0from one account to another account, whether such deposit can\u00a0be declared under the Scheme? Question No.4:<\/strong> Where a notice under Section 142(1)\/ 143(2)\/ 148\/ 153A\/ 153C of\u00a0the Income Tax Act has been issued to a person for an\u00a0assessment year, will such person be eligible for making a\u00a0declaration under the Scheme?<\/p>\n Answer:<\/strong> Yes, such person is eligible to avail the Scheme subject to\u00a0fulfilment of conditions specified in the Scheme.<\/p>\n Question No.5:<\/strong> Can a person against whom a search\/ survey operation has been\u00a0initiated, file declaration under the Scheme and whether the\u00a0cash seized during search operation can be declared under the\u00a0Scheme?<\/p>\n Answer:<\/strong> Yes, a person against whom a search\/survey operation has been\u00a0initiated is eligible to file declaration under the Scheme in\u00a0respect of undisclosed income represented in the form of cash or\u00a0deposit in an account maintained with specified entity.<\/p>\n Question No.6:<\/strong> Whether credit of advance tax paid, tax deducted at source\u00a0(TDS), tax collected at source (TCS), in respect of an income\u00a0declared under the Scheme would be available? Question No.7:<\/strong> Whether undisclosed income represented in the form of deposits\u00a0in foreign bank account is eligible for the Scheme?<\/p>\n Answer:<\/strong> Clause (d) of Section 199-O of the Scheme provides that the\u00a0Scheme shall not apply in relation to any undisclosed foreign\u00a0income and asset which is chargeable to tax under the Black\u00a0Money (Undisclosed Foreign Income and Assets) and\u00a0Imposition of Tax Act, 2015. Hence, undisclosed income\u00a0represented in the form of deposits in foreign bank account is\u00a0not eligible for the Scheme.<\/p>\n Question No.8:<\/strong> Can a person come under the Scheme with respect to deposit\u00a0made in a bank account prior to the Financial Year 2016-17?<\/p>\n Answer:<\/strong> A person can avail the Scheme for any assessment year\u00a0commencing on or before the 1st day of April, 2017. Hence,\u00a0deposits made in bank account prior to financial year 2016-17\u00a0can also be declared under the Scheme.<\/p>\n Question No.9:<\/strong> If a person does not declare undisclosed cash deposited in an\u00a0account between 01.04.2016 to 15.12.2016 under the Scheme, then\u00a0whether such undisclosed deposit shall attract tax at the rate\u00a0provided in the Taxation Laws (Second Amendment) Act, 2016?<\/p>\n Answer:<\/strong> The amended provisions of Section 115BBE of the Income-tax\u00a0Act, 1961 shall apply to A.Y.2017-18, relating to F.Y. 2016-17.\u00a0Hence, undisclosed deposits between 01.04.2016 to 15.12.2016 \u00a0shall also attract tax at the rate provided in the Taxation Laws\u00a0(Second Amendment) Act, 2016.<\/p>\n Question No.10:<\/strong> Whether undisclosed income deposited\/repaid in an Overdraft\u00a0Account or Cash Credit Account or any loan account\u00a0maintained with a bank is eligible for being declared under the\u00a0Scheme?<\/p>\n Answer:<\/strong> Yes, the amount deposited or repaid against an overdraft\u00a0account\/cash credit account\/any loan account maintained with\u00a0a bank or any specified entity is eligible for being declared\u00a0under the Scheme.<\/p>\n Question No.11:<\/strong> Whether the cash seized during a search and seizure action of\u00a0the Department and deposited in Public Deposit Account is\u00a0allowed to be adjusted against the payments required to be\u00a0made under the Scheme?<\/p>\n Answer:<\/strong> The adjustment of cash seized by the Department and deposited\u00a0in the Public Deposit Account may be allowed to be adjusted for\u00a0making payment of tax, surcharge and penalty under the Question No.12:<\/strong> Person \u2018A\u2019 made an advance in cash for procurement of goods\u00a0(other than immovable property) or services to person \u2018B\u2019.\u00a0Person \u2018B\u2019 deposits this amount in his bank account. Person \u2018B\u2019\u00a0subsequently returns this amount to person \u2018A\u2019 in cash or\u00a0through digital means as the purpose for which advance was\u00a0made did not materialise. Can person \u2018A\u2019 declare this amount Answer:<\/strong> Yes, person \u2018A\u2019 is eligible to declare the said amount under the\u00a0Scheme. Since the advance was made for procurement of goods\u00a0(other than immovable property) or services, no penalty under Section 271D or 271E of the Act shall be attracted in respect of\u00a0the said transactions.<\/p>\n [F.No.142\/33\/2016-TPL(Part)]<\/p>\n Ministry of Finance<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan\u00a0Yojana, 2016 (hereinafter \u2018the Scheme\u2019) provides an opportunity to persons having\u00a0undisclosed income in <\/p>\n","protected":false},"author":91,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[],"class_list":["post-100541","post","type-post","status-publish","format-standard","hentry","category-hot_off_the_press","category-news"],"yoast_head":"\n
\nQuestion No.2:<\/strong> Whether declaration under the Scheme can be made in respect of\u00a0income which is represented in the form of investment in any\u00a0asset like jewellery, stock or immovable property?<\/p>\n
\ndeclaration of an income which is represented in the form of\u00a0assets like jewellery, stock or immovable property.<\/p>\n
\nAnswer:<\/strong> Yes, a declaration under the Scheme can be filed in respect of\u00a0deposits made in an account maintained with a specified entity\u00a0by any mode such as cash, cheque, RTGS, NEFT, or any
\nelectronic transfer system.<\/p>\n
\nAnswer:<\/strong> No credit for advance tax paid, TDS or TCS shall be allowed\u00a0under the Scheme.<\/p>\n
\nScheme on the request of the person from whom the cash is\u00a0seized. However, the said amount shall not be allowed to be\u00a0adjusted for making deposits under the Pradhan Mantri Garib\u00a0Kalyan Deposit Scheme.<\/p>\n
\nunder the Scheme? Whether penalty under Section 271D or 271E\u00a0shall be attracted in the case of person \u2018B\u2019?<\/p>\n