DISCLOSURE UNDER PM GARIB KALYAN YOJNA VERSUS VOLUNTARY DISCLOSURE UNDER SECTION 115BBE

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DISCLOSURE UNDER PM GARIB KALYAN YOJNA VERSUS VOLUNTARY DISCLOSURE UNDER SECTION 115BBE

Sr. No.
Points of comparison
Proposed PMGKY Scheme
Proposed on-tap voluntary disclosure scheme u/s 115BBE of Income-tax Act, 1961
1.
Duration of Scheme
One-Time window – Limited duration. Last date to be notified
On-tap scheme to be available with effect from AY 2017-18. No expiry date to avail. Will be available till section again amended/omitted/made non-operative
2.
What can be declared
Undisclosed income for AY 2017-18 or prior assessment years
Undisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D
3.
Nature of undisclosed income that can be declared
Undisclosed income in the form of cash (whether demonetized notes or legal tender) & deposits in accounts with banks/post offices/RBI/other notified entities
Undisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D, whether they are in the form of jewellery, bullion, valuables, undisclosed investments, unexplained cash credits, hundi transactions otherwise than through account payee cheque, unexplained expenditure
4.
Definition of ‘undisclosed income’
Cash or deposits with specified entities are Undisclosed income under the Scheme to the extent the build-up of this wealth stock cannot be satisfactorily explained by tax free incomes or declared income or liabilities.
Undisclosed income covered by sections 68, 69, 69A, 69B, 69C & 69D
5.
Manner of disclosure
Declaration in form to be notified
In ITR
6.
Payments
Tax, cess and penalty @ 49.9% of undisclosed income; Deposit in non-transferable, non-interest-bearing PMGKY locked in for 4 years bonds : @ 25% of undisclosed income
Tax, Surcharge & Education cess totalling to 77.25% to 83.25 of undisclosed income shown in ITR
7.
Deadline for payment
To be notified
On or before 31st March of relevant previous year
8.
Applicability of interest under section 234A/234B/234C
Not applicable
Applicable in appropriate cases
9.
Whether undisclosed income in form of proceeds of crime can be declared?
No.
Yes
10.
Use of declaration for Wealth-tax proceedings of past years
Secrecy under section 138 of Income-tax Act, 1961, applicable except for Acts specified in section 199-O of Finance Act, 2016
Past wealth-tax matters can be opened based on declaration
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