199A. (1) This Scheme may be called the Taxation and Investment Regime for
Pradhan Mantri Garib Kalyan Yojana, 2016.
(2) It shall come into force on such date as the Central Government may, by
notification, in the Official Gazette, appoint.
199B. In this Scheme, unless the context otherwise requires,—
(a) "declarant" means a person making the declaration under sub-section (1)
of section 199C;
(b) "Income-tax Act" means the Income-tax Act, 1961;
(c) "Pradhan Mantri Garib Kalyan Deposit Scheme, 2016” (hereinafter in
this Chapter referred to as “the Deposit Scheme”) means a scheme notified by
the Central Government in consultation with the Reserve Bank of India in the
Official Gazette; and
(d) all other words and expressions used in this Scheme but not defined
and defined in the Income-tax Act shall have the meanings respectively assigned
to them in that Act.
199C. (1) Subject to the provisions of this Scheme, any person may make, on or
after the date of commencement of this Scheme but on or before a date to be notified
by the Central Government in the Official Gazette, a declaration in respect of any
income, in the form of cash or deposit in an account maintained by the person with a
specified entity, chargeable to tax under the Income-tax Act for any assessment year
commencing on or before the 1st day of April, 2017.
(2) No deduction in respect of any expenditure or allowance or set-off of any
loss shall be allowed against the income in respect of which a declaration under
sub-section (1) is made.
28 of 2016. Amendment
of section 2.
Insertion of
new Chapter
IX A.
Short title and
commencement.
Definitions.
43 of 1961.
Declaration of
undisclosed
income.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Explanation.— For the purposes of this section, “specified entity” shall mean—
(i) the Reserve Bank of India;
(ii) any banking company or co-operative bank, to which the
Banking Regulation Act, 1949 applies (including any bank or banking institution
referred to in section 51 of that Act);
(iii) any Head Post Office or Sub-Post Office; and
(iv) any other entity as may be notified by the Central Government in the
Official Gazette in this behalf.
199D. (1) Notwithstanding anything contained in the Income-tax Act or in any
Finance Act, the undisclosed income declared under sub-section (1) of section 199C
within the time specified therein shall be chargeable to tax at the rate of thirty per cent.
of the undisclosed income.
(2) The amount of tax chargeable under sub-section (1) shall be increased by a
surcharge, for the purposes of the Union, to be called the Pradhan Mantri Garib
Kalyan Cess calculated at the rate of thirty-three per cent. of such tax so as to fulfil the
commitment of the Government for the welfare of the economically weaker sections
of the society.
199E. Notwithstanding anything contained in the Income-tax Act or in any
Finance Act, the person making a declaration under sub-section (1) of section 199C
shall, in addition to tax and surcharge charged under section 199D, be liable to pay
penalty at the rate of ten per cent. of the undisclosed income.
199F. (1) Notwithstanding anything contained in the Income-tax Act or in any
other law for the time being in force, the person making a declaration under
sub-section (1) of section 199C, shall deposit an amount which shall not be less than
twenty-five per cent. of the undisclosed income in the Pradhan Mantri Garib Kalyan
Deposit Scheme, 2016.
(2) The deposit shall bear no interest and the amount deposited shall be allowed
to be withdrawn after four years from the date of deposit and shall also fulfil such
other conditions as may be specified in the Pradhan Mantri Garib Kalyan Deposit
Scheme, 2016.
199G. A declaration under sub-section (1) of section 199C shall be made by a
person competent to verify the return of income under section 140 of the Income-tax
Act, to the Principal Commissioner or the Commissioner notified in the Official Gazette
for this purpose and shall be in such form and verified in such manner, as may be
prescribed.
199H. (1) The tax and surcharge payable under section 199D and penalty payable
under section 199E in respect of the undisclosed income, shall be paid before filing of
declaration under sub-section (1) of section 199C.
(2) The amount referred to in sub-section (1) of section 199F shall be deposited
before the filing of declaration under sub-section (1) of section 199C.
(3) The declaration under sub-section (1) of section 199C shall be accompanied
by the proof of deposit referred to in sub-section (1) of section 199F, payment of tax,
surcharge and penalty under section 199D and section 199E, respectively.
199-I. The amount of undisclosed income declared in accordance with
sub-section (1) of section 199C shall not be included in the total income of the declarant
for any assessment year under the Income-tax Act.
199J. A declarant under this Scheme shall not be entitled, in respect of undisclosed
income referred to in section 199C or any amount of tax and surcharge paid thereon,
to re-open any assessment or reassessment made under the Income-tax Act or the
Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other
proceeding in relation to any such assessment or reassessment.
Charge of tax
and surcharge.
Penalty.
Deposit of
undisclosed
income.
Manner of
declaration.
Time for
payment of
tax, penalty,
surcharge and
deposit.
Undisclosed
income
declared not to
be included in
total income.
Undisclosed
income
declared not to
affect finality
of completed
assessments.
10 of 1949.
27 of 1957.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
199K. Any amount of tax and surcharge paid under section 199D or penalty paid
under section 199E shall not be refundable.
199L. Nothwithstanding anything contained in any other law for the time being
in force, nothing contained in any declaration made under sub-section (1) of section
199C shall be admissible in evidence against the declarant for the purpose of any
proceeding under any Act other than the Acts mentioned in section 199-O.
199M. Notwithstanding anything contained in this Scheme, where a declaration
has been made by misrepresentation or suppression of facts or without payment of tax
and surcharge under section 199D or penalty under section 199E or without depositing
the amount in the Deposit Scheme as per the provisions of section 199F, such declaration
shall be void and shall be deemed never to have been made under this Scheme.
199N. The provisions of Chapter XV of the Income-tax Act relating to liability in
special cases and of section 119, section 138 and section 189 of that Act shall, so far as
may be, apply in relation to proceedings under this Scheme as they apply in relation to
proceedings under the Income-tax Act.
199-O. The provisions of this Scheme shall not apply—
(a) in relation to any person in respect of whom an order of detention has
been made under the Conservation of Foreign Exchange and Prevention of
Smuggling Activities Act, 1974:
Provided that—
(i) such order of detention, being an order to which the provisions
of section 9 or section 12A of the said Act do not apply, has not been
revoked on the report of the Advisory Board under section 8 of the said
Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions
of section 9 of the said Act apply, has not been revoked before the expiry
of the time for, or on the basis of, the review under sub-section (3) of
section 9, or on the report of the Advisory Board under section 8, read
with sub-section (2) of section 9, of the said Act; or
(iii) such order of detention, being an order to which the
provisions of section 12A of the said Act apply, has not been revoked
before the expiry of the time for, or on the basis of, the first review under
sub-section (3) of that section, or on the basis of the report of the Advisory
Board under section 8, read with sub-section (6) of section 12A, of the
said Act; or
(iv) such order of detention has not been set aside by a court of
competent jurisdiction;
(b) in relation to prosecution for any offence punishable under
Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs
and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention)
Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami
Property Transactions Act, 1988 and the Prevention of Money-Laundering
Act, 2002;
(c) to any person notified under section 3 of the Special Court (Trial of
Offences Relating to Transactions in Securities) Act, 1992;
(d) in relation to any undisclosed foreign income and asset which is
chargeable to tax under the Black Money (Undisclosed Foreign Income and
Assets) and Imposition of Tax Act, 2015.
Tax, etc., not
refundable.
Declaration not
admissible in
evidence against
declarant.
Declaration by
misrepresentation
of facts to be
void.
Applicability
of certain
provisions of
Income-tax
Act.
Scheme not to
apply to certain
persons.
52 of 1974.
45 of 1860.
61 of 1985.
37 of 1967.
49 of 1988.
45 of 1988.
15 of 2003.
22 of 2015.
27 of 1992.
199P. For the removal of doubts, it is hereby declared that save as otherwise
expressely provided in sub-section (1) of section 199C, nothing contained in this
Scheme shall be construed as conferring any benefit, concession or immunity on any
person other than the person making the declaration under this Scheme.
199Q. (1) If any difficulty arises in giving effect to the provisions of this Scheme,
the Central Government may, by order, not inconsistent with the provisions of this
Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of this Scheme come into force.
(2) Every order made under this section shall be laid before each House of
Parliament.
199R. (1) The Board may, subject to the control of the Central Government, by
notification in the Official Gazette, make rules for carrying out the provisions of this
Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the form and manner of declaration and verification to be made under
section 199G; and
(b) any other matter which is to be, or may be, prescribed, or in respect of
which provision is to be made, by rules.
(3) Every rule made under this Scheme shall be laid, as soon as may be after it is
made before each House of Parliament while it is in session for a total period of thirty
days which may be comprised in one session or in two or more successive sessions
and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.'.