New Delhi, March 9 (IANS) - Warning that the black money was traceable to its holders like one's fingerprints, the Income Tax Department on Thursday asked people to come clean and pay 49.90% tax on undisclosed income under Pradhan Mantri Garib Kalyan Yojana by March 31. "Like fingerprints, your black money will lead us to you! The Income Tax Department has information about your undisclosed income and assets," it said in an advertisement in national dailies here.
Non-declaration of such undisclosed income will be liable to tax, surcharge and cess of 77.25% along with penalty, prosecution and enforcement actions, the department said.
Refuting that the advertisement was a veiled warning, Central Board of Direct Taxes (CBDT) spokesperson said: "It's a window of self-compliance being provided for a full and honest disclosure."
"Make your full and honest disclosure under Pradhan Mantri Garib Kalyan Yojana 2016 by March 31 to come clean and help the underprivileged," it said. Meanwhile, All India Bank Employees Association (AIBEA) General Secretary C.H. Venkatachalam saw the advertisement only as a means to create phobia without any actual action expected.
"I am not expecting any problem for such people (who hold undisclosed income). We have seen stern statements from the governments in past as well. They are just creating phobia," Venkatachalam said.
Under the PMGKY, declaration can be made by any person in the form of cash or deposits in an account with bank or a post office with tax, surcharge and penalty totalling to 49.90% of the undisclosed income.
There would also be mandatory interest-free deposit of 25% of the undisclosed income in Pradhan Mantri Garib Kalyan Deposit Scheme for a lock-in period of four years.
The government has ensured total confidentiality under the scheme with immunity against prosecution, except for criminal acts under the Prevention of Money Laundering Act, Narcotics Act or for holding 'benami' (proxy) properties and smuggling offences.
The income declared under the PMGKY is not taxable under the Income Tax Act, 1961.