Pradhan Mantri Garib Kalyan Yojna 2016
Currently ruling NDA government claimed the power by promising unleashing the black money from the India. In order make those promises true, ever since the current central government led by Mr. Narendra Modi sworn as Prime Minister, various actions and plans has been introduced to bring the black money to the light. The Prime Minister of India widely believes that by brining the black money to market, several development programs can be implemented and it will boost the rural poor people’s living status.
Demonetization of Indian Currency
Demonetization of Indian Higher value currency Rs. 500 and Rs. 1000 was one of the bold and denotative plans taken by the current Prime minster of India Mr. Modi. By banning those higher value Indian currency moneys from public usage, government took some serious measures to control the black money conversion like placing threshold limit of amount withdrawal from bank by common man, restricting common man from hold high amount of gold bars and gold jewels at homes.
| S.No | Facts about actions taken after demonetisation take place | Results of the action taken after demonetisation |
| 1 | How many cases so far captured after demonetization | Around 291 cases across the nation |
| 2 | Approximate Amount seized after demonetization | Rs. 316 Crore across the nation |
| 3 | Amount of New Currency seized in raids held after demonetization | Rs. 80 Crore from across the nation |
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4 |
Government keen to block | Black Money and Gold Bars/jewels purchased with undisclosed incomes |
In addition, government of India directs the people of India towards the cashless transaction as it provides so many benefits to the nation and also for the users too. Also, the government of India very keen on blocking all the windows by which the black money holders able to convert their black money into legal.
Steps Taken by the government of India on black money holders
After witnessing some tricky move by the black money holders, depositing their holdings in the Jan Dhan bank accounts which was created under especially for poor people by the Prime Minister’s scheme. The respective authority along with RBI took some serious measures on withdrawing those amounts from the Jan Dhan Bank accounts.
Also, by noticing the high amount of exchange values and high amount of deposits in bank accounts, the income tax departments raid those respective person’s home in order to bring check whether any undisclosed amount used for exchanging.
By shutting all the doors for black money holders, now government of India introduces this new scheme By which the black money holders can deposit their holdings to the bank accounts with some penalties and taxation amounts.
Details of this scheme
This yojana, which is introduced by the current government of India in order to give some relief for the black money holders as they can disclose their holding amounts with some taxation amounts along with penalties.
Under this scheme, black money holders can able to deposit their undisclosed incomes to bank accounts where 50% of the amounts will be deducted as taxations charges, penalties and surcharges as per the terms of PM Garib Kalyan yojana.
| S.No | Things Need to know about PM Garib Kalyan | Detailed Information |
| 1 | Name of the Scheme | Pradhan Mantri Garib Kalyan Yojana, 2016 |
| 2 | PM Garib Kalyan also known as | The Taxation and Investment Regime |
| 3 | Date of Commencement of PM Garib Kalyan Yojana 2016 | 17th of December 2016 |
| 4 | Tax Payable | 40% as Tax Amount |
| 5 | Penalty Charges under PM Garib Kalyan Yojana 2016 | 10% |
| 6 | Collective amount need to pay under this scheme | 50% |
| 7 | Black Money holders can disclose this money in this scheme until | 31st of March 2017 |
| 8 | Information about Black Money can be sent to | blackmoneyinfo@incometax.gov.in |
With the introduction so this new scheme PM Garib kalyan Yojana, 2016, any person who is considered as the citizen of the India can declare any amount of Income in form of either in cash as well as in form of deposit in the bank accounts under the name of respective person. It can also be the undisclosed income, for such disclosure the tax amount of 40% will be implemented and extra 10% will be charged as the penalties. The remaining can be fully owned by the respective person, which is to be considered as legal as per the recent amendment done by the central government of India on Indian Tax act, 1961.
Announcement of this scheme
The government of India has announced this scheme yesterday and the scheme started to function right from today that is 17th of December 2016. Under this scheme, any person can became clean by paying 50% of their holding undisclosed amount. The scheme will be in action from 17th December of 2016 to the mid night of the 31st March of 2017.
Though, the scheme is specially aimed to the development of poor people across the nation, the government of India make use of this scheme by getting money as the form of taxation and penalty from the black money holders.
Key Points
- The details of the disclosure will be kept secret and never been disclosed to public at any cost, so the black money holder can gain their privacy and respect in the society.
- From the deposited undisclosed amount from the black money holders, about 25% will be locked for the time period of 4 years as it will be utilized for the development of poor people. After 4 years, the respective owners can get back their money from accounts without any interest paid.
- Under this new scheme, the depositors can pay their penalties either at bank, or can pay directly to the income tax department, without disclosing any identification.
What happens if the black money holders fail to make use of this Scheme?
- They have to file their undisclosed income and black money holdings at the end of this financial year along with the unknown income source and with proper papers.
- For the undisclosed money, the respective person needs to pay the taxation amount of 60% along with extra surcharge amount of 25%. So in total about 85% of their undisclosed amount will be taken by the government of India.
- However, with respect to the recent changes done in the income tax act done by the central government of India. Extra 10% amount can be charged as the penalty depending up on the criteria’s like undisclosed income amount, person’s wealth, source of Income and so.
- At the same time, if the government officials or income tax department found as the person mis-reporting or wrong doing while filing tax, the respective authority has the provision of charging 50% to 200%.
Also the government of India released an official mail ID blackmoneyinfo@incometax.gov.in, where anyone can report about the black money holders after checking the information raids/action will be conducted by responsible departments.
Conclusion:
It is pretty clear that government of India is to be like a watchdog for all wrongdoers of the society particularly for black money holders, and pretty strong on demolishing the black money from the Indian society. However, only by taking proper steps to ban the black economy, government of India will be able to make Indian society without any black money, so proper policies and plans do be executed based on that.
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