Pradhan Mantri Garib Kalyan Yojanay (PMGKY)-Poverty Scheme
Launched: April 2015
Main Objective: Implement the pro-poor welfare schemes in more effective way and reaches out to more poor population across the country.
Garib Kalyan Yojana is a Poverty Alleviation Scheme, which is primarily a work shop that you can pay and attend. The effort of the campaign and workshop is to motive and appraise the member of parliaments to help them effectively implement the government run schemes for the welfare of poor in the country.
About Complete Scheme:
The Pradhan Mantri Garib Kalayan Yojana is retailored Income Declaration Sheme with a black money decalration option from December 17, 2016 to March 31st 2017. Money mobilised from the PMGKY Income Declaration Scheme will be utilised to finance the welfare programme for the poor which is called in the same name -Pradhan Mantri Garib Kalayan Yojana (PMGKY).
Prviously, the government has notified Pradhan Mantri Garib Kalyan Yojana and a cess as a tax (including penalty) on black money in the form of deposit made with banks during the demonetisation period (after November 9).
The modified scheme with a period from December 17 to March 31st was announced on December 16th. The applied tax rate on declared disclosed income will be 50%. Details about the income revealed under the scheme will be kept secret.
Tax rate on the disclosed income will be 50%. This 50% tax rate comprised of basic tax rate of 30% plus 10% penalty and another 10% (or 33% of the basic tax rate) as PMGKY cess.
The Pradhan Mantri Garib Kalyan Cess is thus, a cess imposed on those who discloses undisclosed income out of their savings made in banks after the demonetization day.
The PMGK Cess and other tax measures were introduced by FM Arun Jaitely in the Parliament on 28th of Novermber 2016 on undisclosed income revealed out of the savings made after November 10, 2016. These measures will be implemented after amending the relevant sections of the Income Tax Act 1961.
Along with this cess, tax, and penalties on undisclosed income or black income stored in banks follwing demonetization is a major action taken by the Government to tackle black money
Objective of the amendment is that the Government should get additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy. For this, a tax and penalty will be imposed on undisclosed income (50% on those who discloses and 85% for those who don’t disclose and caught) and besides a portion of the remaining money should be used for development purposes.
For tackling the black money after demonetisation, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) is proposed in the Bill. It has two components -one for disclosing persons and the other one for non-disclosing and caught with undisclosed income. Following is composition of the bill regarding the treatment of undisclosed income.