Income-Tax department warns blackmoney holders to come clean before March 31 deadline

The Income Tax department on Friday cautioned people holding black money that the department is “aware” about their illegal deposits and they should avail the soon-to-end Pradhan Mantri Garib Kalayan Yojana (PMGKY) window to come clean.

In advertisements issued in leading national dailies, the department said that the "countdown" in this regard has begun and stash holders should declare their black money "or regret later".

The window under the PMGKY closes on March 31.       

The advertisement said that the "Income Tax department has information about your deposits." The department also said that total "confidentiality is ensured" to those who declare their black money and assets and funds under this scheme.

It had recently also cautioned stash holders to avail the scheme or face stringent action under Benami laws, adding that the defaulters' names will also be shared with the central probe agencies like the Enforcement Directorate and the CBI.

The tax and penalty against those who hide their black money and fail to avail the PMGKY could go as high as 137 per cent of the cash deposits made, a senior officer had said, adding the department will not shy away from slapping the newly enacted Benami Transactions Act against defaulters.

The official explained that a person or entity that opts for PMGKY will have to pay 49.9 per cent tax on the income, whereas a person who does not opt for the scheme but offers his black income in his Income Tax Returns will face a tax and penalty rate of 77.25 per cent.

The one who does not offer his stash funds under the scheme but is caught with undisclosed income in scrutiny assessment will face 83.25 per cent tax rate. For those who do not declare their stash under the PMGKY and are raided will face 107.25 per cent tax and penalty if the undisclosed income is surrendered during the action.

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