No cash payment in demonetised notes for PMKGY after Dec 30: IT official

Kolkata: No one will be able to pay tax, surcharge, penalty and deposits under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme in demonetised notes after December 30, even though the scheme will continue till March 31, 2017, an Income Tax official said on Wednesday.

The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 has commenced on December 17, 2016 and is open for declarations up to March 31, 2017.

"Under the scheme, no one will be able to pay tax, surcharge, penalty and deposit in the demonetised notes after December 30 though the scheme will continue till March 31. After December 30, a person can pay the same and deposit under the scheme through cheque or RTGS or by new currencies," said P.B. Pramanik, Additional Director of Income Tax, Intelligence and Criminal Investigation.

The government said the payment towards tax, surcharge, penalty and deposit under the PMGKY can be made in old bank notes of Rs 500 and Rs1000 denomination up to December 30.

As per the scheme, the person will have to pay 30 percent tax on income, 33 percent surcharge on tax, 10 percent penalty on income, totalling to nearly 50 percent of the income to be declared under the scheme. In addition, an amount equal to 25 percent of the declaration will have to be deposited in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years without any interest.

"The payment (of tax, surcharge and penalty) under the scheme is to be made through challan ITNS-287 and the deposits are to be made in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016," Pramanik said at an event organised by the Eastern India Regional Council (EIRC) of The Institute of Chartered Accountants of India (ICAI).

"Under the scheme, a person can pay (the tax, surcharge and penalty) and deposit from the amount deposited in the bank account. People have been depositing old currency notes during the demonetisation period (November 8-December 30)," he said. 

Persons who already declared their unaccounted income in Income Declaration Scheme can also avail PMKGY, Pramanik added.