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

[Sunil MALOO]

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

December 3, 2016

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

 

Sr. No.	Points of comparison	Proposed PMGKY Scheme	Proposed on-tap voluntary disclosure scheme u/s 115BBE of Income-tax Act, 1961
1.	Duration of Scheme	One-Time window - Limited duration. Last date to be notified	On-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 declared	Undisclosed income for AY 2017-18 or prior assessment years	Undisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D
3.	Nature of undisclosed income that can be declared	Undisclosed income in the form of cash (whether demonetized notes or legal tender) & deposits in accounts with banks/post offices/RBI/other notified entities	Undisclosed 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 disclosure	Declaration in form to be notified	In ITR
6.	Payments	Tax, 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 income	Tax, Surcharge & Education cess totalling to 77.25% to 83.25 of undisclosed income shown in ITR
7.	Deadline for payment	To be notified	On or before 31st March of relevant previous year
8.	Applicability of interest under section 234A/234B/234C	Not applicable	Applicable 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 years	Secrecy under section 138 of Income-tax Act, 1961, applicable except for Acts specified in section 199-O of Finance Act, 2016	Past wealth-tax matters can be opened based on declaration

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Thanking You,

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Sunil MALOO | Partner

+91-9173032720​

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Surana Maloo & Co. | Chartered Accountants
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