*Avail PMGKY or be ready to face harsh steps: PCIT
Mohinder Verma
JAMMU, Mar 8: Armed with sufficient and credible information about enormously high cash deposits post-demonetization, the Income Tax Department has zeroed in on around 2500 businessmen, traders and other people in Jammu and Kashmir, who have not come forward so far to avail the benefit of “last window” in the shape of Pradhan Mantri Garib Kalyan Yojana (PMGKY), and stern action against them is on the cards as ongoing surveys are going to be intensified in the coming days.
Highly placed official sources told EXCELSIOR that though the data obtained by the Income Tax Department J&K Circle from various banks operating in the State reveals that large number of people had deposited more than Rs 5 lakh in cash post-demonetization yet the department has started laying focus on those cases where the cash deposit was extremely high.
“Particularly those businessmen and traders whose returns during the preceding years were very meager as compared to cash deposited by them in their respective bank accounts between November 9 and December 31, 2016 are being targeted”, they said.
According to the sources, nearly 2500 such cases have been identified for action so that they come forward to avail the benefit of Pradhan Mantri Garib Kalyan Yojana, 2016—an amnesty scheme launched by Prime Minister Narendra Modi in December 2016.
Giving further break-up, they said that out of 2500 prioritized cases, 1144 belong to Range-I and Range-II of Income Tax (entire Jammu province) and 1296 cases belong to Range-II (entire Kashmir valley). “Ongoing surveys are the part of the action the Income Tax Department has planned against such persons and this drive is going to be intensified in the coming days as the last window is open for the people with huge cash deposits till March 31, 2017 only”, sources added.
In some of these cases the Income Tax Department has recently attached the bank accounts particularly in Kashmir valley so as to tighten noose around those who had deposited black money in their accounts but were reluctant to come forward to avail PMGKY with the hope that they will go scot free.
It is pertinent to mention here that PMGKY is an amnesty scheme on the lines of the Income Declaration Scheme (IDS) launched early last year. 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.
Not declaring undisclosed income under the PMGKY will attract a fine of 77.25% if the income is shown in tax returns. In case the income is not shown in tax returns, it will further attract 10% penalty followed by prosecution.
When contacted, Principal Commissioner of Income Tax (PCIT) J&K Circle, Sangeeta Gupta said, “people with heavy deposits in their bank accounts are compelling the department for action as despite generating much awareness about PMGKY they didn’t come forward to come clean”, adding “we are not going to spare anyone as the department is in the possession of credible information as such those with heavy deposits should not waste time and come forward to opt PMGKY”.
Responding to a question, she said that up to February 28, 2017, 38 surveys were conducted across Jammu and Kashmir during the current financial year, adding a number of surveys were also conducted on the basis of information obtained from the banks regarding huge cash deposits post-demonetization.
“The surveys are aimed at sending a message to the people that they cannot go scot free by depositing huge cash and PMGKY is the most suitable and last option available for them”, she further said while disclosing that in four suo-moto cases disclosure of Rs 1.40 crore has been made under PMGKY so far.
About functioning of department on other aspects, the Principal Commissioner informed that an amount of Rs 12.96 crore was collected out of arrear demand from Kashmir valley while as the figures in this regard are at Rs 10.17 crore in respect of Jammu region. Similarly against Rs 173.18 crore net current demand raised during the current financial year collection of Rs 44.48 crore was made by the department in Jammu region and Rs 2.64 crore in Kashmir valley.
Follow our WhatsApp channel