The Pradhan Mantri Garib Kalyan Yojana started as a part of Taxation Laws(Second Amendment) Bill 2016 which is assented by President Pranab Mukharjee. The Act came into effect on 17th December 2016. The Bill was passed by the Lok Sabha as Money Bill without discussion in November 2016. Then Bill was sent to the Rajya Sabha.
The Bill could not take up the legislation in Rajya Sabha due to the stand-off between the government and the opposition.But being a Money Bill it is deemed to be passed, if the Upper House did not return the Bill to Lok Sabha within 14 days.
About The Pradhan Mantri Gram Kalyan Yojana(PMGKY)
Under the PMGKY Scheme, the people who holds undisclosed money post 16th December are given a chance to disclose and declare black money, and not to face the prosecution for holding black money. They can reveal their undisclosed money, by paying 50% tax on the undisclosed money along with penalty amount and lock-in amount. Lock-in amount is one-fourth of the declared money and will be held in lock by tax department for four years. This amount will only be returned to the declaring after four years. The declaring names and details will be kept confidential and will not be used for prosecution. As per the scheme, the declaration deadline is March 31, 2017.
How to declare black money through the PMGKY scheme
Those who want to declare their black money has to first deposit the tax and penalty amount for their undisclosed money in the Pradhan Mantri Garib Kalyan Yojna (PMGKY) account. The declaration can only be made after the tax and penalty are deposited in the PMGKY account.
The money collected under the PMGKY account will be used for welfare schemes. The government also unveiled an email id for revealing the black money details and also to tip-off the government about the black money holders.
The email ID for tip-off is firstname.lastname@example.org.
Revenue Secretary Hasmukh Adhia announcing the scheme at the press conference said:
“We want people to join PM Garib Kalyan Yojana, as they contribute to welfare of the people through this scheme.
The declarations under new black money disclosure scheme will be kept confidential. People can give information about
conversion of black money into white to the government through email address created to get such info.”