CBDT Clarifies No TDS or Advance Tax Credit for Income under PMGKY

CBDT Clarifies No TDS or Advance Tax Credit for Income under PMGKY The Central Board of Direct Taxes (CBDT) on January 18, 2017 cleared that income declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY) would not be entitled to PMKGYget any credit by way of advance tax paid or the tax deducted at source (TDS) or tax collected at source (TCS). This is in contrast to the earlier

Income Declaration Scheme (IDS) under which these credits were allowed. PMGKY was set up to give an opportunity to those who deposited tax-evaded money in bank-demonetised currencies. It was opened on December 17, 2016 and will remain open till March 31.

iv. Under the scheme, a person declaring undisclosed income would need to pay a tax of 30%, in addition to a penalty of 10% and a Pradhan Mantri Garib Kalyan cess of 33% on the tax.

Under the Income Declaration Scheme (‘IDS’), the government has allowed TDS credit in those cases where such credit has not already been claimed in the income-tax return.