In what could be the single-largest cash deposit in Tamil Nadu during the demonetization drive, an individual in Tiruchengode in Namakkal district has deposited Rs 246 crore in cash in an Indian Overseas Bank branch under the Pradhan Mantri Garib Kalyan Yojana (PMGKY).
According to Income-Tax (I-T) department officials, the person, whose identity is not yet revealed, made the cash deposits in old demonetized currencies. The official said that the individual has agreed to join the PMGKY, under which one has to pay 49.9 per cent of the total money as tax and 25 per cent of the money would be retained by the government without any interest. “This is the biggest cash deposit made by an individual in Tamil Nadu so far,” the official said.
The I-T department official said that with the PMGKY scheme coming to an end on March 31, the final number of individuals and companies joining the one-time scheme, the total deposits and amount of tax paid would be known only after April 1. “We had traced a few hundred individuals and companies that had made huge deposits. We will release details after April 1,” the official said.
The PMGKY scheme provides an opportunity to persons having undisclosed income in cash or deposits in an accounts with specified entities (which include banks and post offices) to declare such income and pay tax, surcharge and penalty, totalling, in all, to 49.9 per cent of the declared income.
A person making a declaration under the scheme will have to pay 30 per cent of the undisclosed income as tax and a surcharge called Pradhan Mantri Garib Kalyan Cess, calculated at 33 per cent of the tax. In addition, a penalty of 10 per cent of the undisclosed income has to be paid. Also, 25 per cent of the deposit will be held without interest for four years. Not declaring black money under the scheme now, but showing it as income in the tax return form would lead to a total levy of 77.25 per cent in taxes and penalty. In case the disclosure is not made either using the scheme or in return, a further 10 per cent penalty on tax will be levied, followed by prosecution.
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