New Delhi: The Central Board of Direct Taxes (CBDT) on Friday said a black money declarant under the Pradhan Mantri Garib Kalyan Yojna (PMGKY) scheme will be allowed to file declaration under the stipulated Form 1 by 10 April, if tax and penalty is paid by the deadline that ends on Friday.
“Representations have been received from various stakeholders regarding difficulties in uploading of declaration in Form No 1 under the PMGKY scheme. Instances have been communicated wherein despite making payment of tax, surcharge, penalty and deposit under the scheme, challan identification number or the deposit reference number with respect to the payment of tax, surcharge, penalty and deposit under the scheme has not been provided by the banks," the CBDT said in a notification issued on Friday.
The CBDT is the policy-making body of the income tax department. It added, hence, the assessees are unable to upload or submit Form No 1 by the deadline that ends on Friday. “Considering the rush in banks during last days of financial year, which also happens to be the last date (31 March, 2017) of filing declaration under the scheme, CBDT has decided that if an assessee has made payment of tax, surcharge, penalty and deposit under the scheme, in the banks by the closing hours of 31 March, 2017, he shall be allowed to file declaration in Form No 1 under the scheme by 10 April, 2017," it said.
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The Form 1 is the authentic declaration format that has to be submitted by the black money holder to the designated tax department authority via a hard copy or the online medium. Following, this the taxman will issue a Form 2 or certificate stating that his or her declaration has been accepted and is valid under the PMGKY.
The CBDT had on Thursday issued orders that all designated offices of the income tax department which can accept declarations under the black money window of PMGKY will remain open till the midnight of 31 March.
A person or entity who opts for PMGKY will have to pay 49.9% tax on the undisclosed 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%.
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% tax rate. For those who do not declare their stash under the PMGKY and are raided will face 107.25% tax and penalty, if they surrender their undisclosed income during the action.
Those who do not surrender such hidden income even during searches will stand to face the highest level of penalty and tax at 137.25%. The Centre had come out with the PMGKY scheme after its decision to demonetise the two high value currency notes of Rs500 and Rs1,000 last year. A quarter of the total sum will also have to be parked in a non—interest bearing deposit for four years under the said scheme. The scheme had commenced on 17 December last year