Last day to convert black cash or face jail, this is the scheme

New Delhi: In December 2016, Prime Minister Narendra Modi had fulfilled his promise to help poor with the black money stashed by the rich. He did this by launching Pradhan Mantri Garib Kalyan Yojna (PMGKY) that will use deposited black money for the welfare of the poor in the country. At midnight today the PMGKY will end, and with it the chance to come clean.

Many Income Tax offices will remain open till midnight todayto enable people disclose their undisclosed income. The unaccounted cash can be converted into white by paying 50% tax and penalty. Declarations under new black money disclosure scheme will be kept confidential.

What is PMGKY       

- If you deposit Rs 1 lakh of undisclosed income, it will be taxed at 30%, that is 30% of Rs 1 lakh =  Rs 30,000

- You will have to pay penalty of 10% on undisclosed income, that is 10% of Rs 1 lakh                 = Rs 10,000

- You will have to pay Garib Kalyan Cess of 33% on tax, that is 33% of  Rs 33,000                      = Rs 10,000

- You will have to deposit 25% of undisclosed income with Govt, that is 25% of Rs 1 lakh             = Rs 25,000

- You will not get any interest on this 25% deposit in Garib Kalyan Kosh

 and it will be with Govt for 4 years

-  You get 25% cash for immediate use, that is, 25% of Rs 1 lakh                                             = Rs 25,000

Effectively, by paying  50% tax and penalty, the government will convert all your black money into white.