Government has amended one of the conditions of Pradhan Mantri Garib Kalyan Deposit Scheme which calls for parking 25% of the undeclared income in the form of Bonds Ledger Account in banks as interest-free deposit by extending the last day to April 30, 2017 .
“Now the effective date of opening of the Bonds Ledger Account shall be the date of receipt of deposits by the Reserve Bank of India (RBI) from the authorized banks wherein the due tax, surcharge and penalty have been received till 31st March, 2017, provided further that the date of deposit shall in no case be extended beyond 30th April, 2017”, Finance Ministry has said.
So the deadline to make interest-free deposit under PMGKY is now April 30.
PMGKY, another tax compliance window for unaccounted wealth owners, declarants are required to pay tax and deposit 25% of the total undisclosed amount as deposits which will not earn any interest. The PMGKY attracts a 30% tax, 33% surcharge and a 10% penalty on the undisclosed cash and deposits. Besides 25% of the total declared income will have to be deposited as a interest-free scheme for 4 years. The declarants have to make this last window of 25% deposit of their unaccounted money in banks as interest free deposits in the form of Bonds Ledger Accounts with authorised banks and banking companies.
This extension was done as many such declarants had already paid their tax and penalty under the PMGKY but were not able to deposit 25% of their undisclosed income in interest free deposit as is required, officials said. This is the second extension after CBDT had extended the deadline for declaration till April 10, though the last date for filing tax and penalty was March 31, 2017.