Pradhan Mantri Garib Kalyan Yojanaप्रधान मंत्री गरीब कल्याण योजना

What is PMGK Yojna?
Pradhan Mantri Garib Kalyan Yojna (PMGK Yojna) allows people to declare their unaccounted cash and pay taxes. 

Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) is an amnesty scheme launched by the Narendra Modi led Government of India in December 2016 on the lines of the Income declaration scheme, 2016 (IDS) launched earlier in the year. 

The Centre had come out with the PMGKY scheme after its decision to demonetise the two high value currency notes of Rs 500 and Rs 1,000 last year. 

Launch Date: 
The scheme had commenced on December 17, 2016.

The last date to declare income under Pradhan Mantri Garib Kalyan Yojana is: 
April 30, 2017. 

Penalty Rate under PMGKY 
A person or entity who opts for PMGKY will have to pay 49.9 per cent tax on the undisclosed income, whereas a person who does not opt for it but offers his black income in his Income Tax Returns will face a tax and penalty rate of 77.25 per cent. 

Those who do not surrender such hidden income even during searches will stand to face the highest level of penalty and tax at 137.25 per cent. 

A part of the Taxation Laws (Second Amendment) Act, 2016, the scheme provides an opportunity to declare unaccounted wealth and black money in a confidential manner and avoid prosecution after paying a fine of 50% on the undisclosed income. An additional 25% of the undisclosed income is invested in the scheme which can be refunded after four years, without any interest.