Business Other News 25 Feb 2017 Bank Branches may be ...

Bank Branches may be de-authorised

DECCAN CHRONICLE.
Published Feb 25, 2017, 12:47 am IST
Updated Feb 25, 2017, 12:54 am IST
Principal chief Controller of Accounts issued an order directing banks to accept taxes under the PMGKY or face action.
Under the PMGKY, declarants also have to park a quarter of the total sum in a non-interest bearing deposit scheme (PMGKDS) for four years.
 Under the PMGKY, declarants also have to park a quarter of the total sum in a non-interest bearing deposit scheme (PMGKDS) for four years.

New Delhi: The finance ministry has warned banks not to refuse to accept taxes from people under the new black money amnesty scheme — Pradhan Mantri Garib Kalyan Yojana (PMGKY). Any bank refusing to accept taxes will face “de-authorisation” of those branches, it warned.

The Narendra Modi government had announced the Pradhan Mantri Garib Kalyan Yojana after the November 8 demonetisation, to offer a last chance to people having unaccounted cash to come clean by paying 50 per cent tax on bank deposits of junk currencies.

 

Under the PMGKY, declarants also have to park a quarter of the total sum in a non-interest bearing deposit scheme (PMGKDS) for four years. In a notice to banks, the ministry said that they should make necessary changes in their system/software to accept the tax. “Non-compliance of this order may be viewed seriously and may lead to de-authorisation of that branch in case of refusal to accept taxes,” the ministry said.

The scheme opened on December 1. There have been complaints that many banks were not accepting payments of tax under PMGKY due to lack of awareness of the prescribed challan and certain technical reasons.

 

Accordingly, the matter was referred to the Principal Chief Controller of Accounts, who issued an order directing banks to accept taxes under the PMGKY or face action.

As per the scheme, taxes will have to be paid first and then the scheme can be availed of on production of the tax receipt, unlike the recent Income Disclosure Scheme and other such plans wherein disclosures were made first and taxes were recovered later. Also, as the disclosures will be kept confidential, the holder of unaccounted cash need not disclose it in his/her I-T Returns form.

 

Those who don't declare their black money and are caught by the tax department will have to now pay tax between 77 per cent to 100 per cent and will also be liable for prosecution.

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