New Income Disclosure Scheme May Be Notified Soon, Will Probably Be Valid Only Until 30 December

With the Rajya Sabha not taking up the bill related to the government’s new income disclosure scheme for 14 days after it was passed by the lower house, the bill will now be deemed law. The Lok Sabha had passed the bill on November 29. It has been reported that the government will soon issue relevant notifications to this effect.

The Pradhan Mantri Garib Kalyan Yojana, as the new disclosure scheme is called, will require the declarant to pay 30 per cent of newly disclosed income as tax and a further 10 per cent as penalty. On top of this there will be a 33 per cent 'Garib Kalyan Cess' on the money paid as tax. All put together, the declarant will give up 50 per cent of the total amount he/she discloses. Further, 25 per cent of the disclosed income will have to deposited into government schemes/bonds that will be soon notified.

While the scheme was earlier said to be valid until 1st April 2017, Mint reports indicate that it might end on 30 December.