In a recent circular issued by the Central Board of Direct Taxes (CBDT), the Board issued clarifications on the PMGKY Scheme.
The circular clarified that in case of undisclosed income represented in the form of cash in hand covered under the PMGKY scheme, such cash should exists either on the date of making tax payment or on the date of making deposits.
The scheme commenced on 17.12.2016, following the ban of Rs. 500 and Rs. 100 currency notes. In 18th January, 2017, the Board had issued a clarification on the applicability of the Scheme. Following the same, the Board had received a number of representations, from various stakeholders seeking clarification on the question that whether the deposits represented in the form of bank account or cash in hand which are eligible for being declared under the scheme should exists on the date of filing of declaration under the scheme.
The circular clarifies that “where undisclosed income is represented in the form of deposits in an account, maintained with a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the scheme or furnishing a declaration under the scheme. However, where the undisclosed income is represented in the form of cash, it is clarified that such cash should exist on the date of making payment of tax, surcharge and penalty under the scheme or on the date of making deposits under the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, whichever is earlier.”
Read the full text of the Circular below.
