Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
Q. On demonetization of the 500 and 100 rupees notes, a new taxation and investment regimes is proposed. This is related to which of the following scheme?- Published on 29 Nov 16a. Disability Fund
b. Pradhan Mantri Jan Dhan Yojana
c. Pradhan Mantri Garib Kalyan Yojana
d. National Disaster Response Fund
ANSWER: Pradhan Mantri Garib Kalyan Yojana
An alternative Scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) has been proposed.
The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income.
Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied.
In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’.
This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality.
