Central Board of Direct Taxes (CBDT) has issued a notification yesterday stating that any black money declarant can file a declaration through Form 1 by April 10, 2017, in case he/she has paid the penalty and tax by the set deadline. Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme, any person holding black money had to pay the penalty by March 31, 2017. As a matter of fact, anyone who has filed a declaration is required to pay a tax of 49.9% on the undisclosed amount under PMGKY. In case, the person didn’t opt for this scheme and instead offered the black money in income tax returns will be levied a tax of 77.25%. A tax of 83.25% will be levied on those who don’t offer their undisclosed funds under this scheme and come into the security of the IT department. Income tax offices which were accepting declarations were operating till midnight of March 31.
As per the notification, there were various instances where payment of tax and penalty was made under the scheme but the deposit reference number or the challan identification number was not provided by the banks. Therefore many people were unable to submit Form 1 within the due deadline.
All the policies of Income Tax Department are made by CBDT. A black money holder is required to submit a Form 1 to the income tax department either online or as a hard copy. It is an authentic declaration of the black money.
The Government of India had launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme in December last year after it took the decision of scrapping the currency notes of 1000 and 500.