Government may go for direct transfer of cash to poor people’s bank accounts

New Delhi: In a bid to lift the poor and deprived section of the society, Narendra Modi government may go for direct transfer of cash to poor people’s bank accounts.

Finance Minister Arun Jaitley may make a big announcement during the upcoming Budget 2017.

Under the Pradhan Mantri Garib Kalyan Yojna, government may transfer a certain amount to the bank account of poor people, 

As per sources the amount may range anything between Rs 500 and Rs 1000. Sources further stated that the amount will be directly transferred to bank accounts.

Certain part of the amount collected under the PMGKY will likely be used by the government for the poor people.

It may be recalled that offering tax dodgers confidentially and immunity from prosecution under the new tax evasion amnesty scheme Pradhan Mantri Garib Kalyan Yojana (PMGKY), kicked-in from December 17.

The new disclosure scheme will remain open for declarations up to 31st March, 2017.

Not declaring the black money under the scheme now but showing it as income in the tax return form would lead to a total levy of 77.25 percent in taxes and penalty. In case the disclosure is not made either using the scheme or in return, a further 10 percent penalty on tax will be levied followed by prosecution.

The disclosure scheme is part of The Taxation Laws (Second Amendment) Act, 2016, which was approved by the Lok Sabha last month and has been assented by the President.

As per the scheme, taxes will have to be paid first and then the scheme can be availed on production of 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 Income Tax Returns forms.

After the shock November 8 demonetisation announcement, the government allowed the junked Rs 500 and Rs 1000 notes to be deposited in bank accounts.

For those holding unaccounted cash, it offered new tax evasion amnesty scheme wherein 50 per cent tax will be charged on declarations and quarter of the total sum be parked in a non-interest bearing deposit for four years.

Bureau Report