Pradhan Mantri Garib Kalyan Deposit Scheme tweaked, now gives depositors multiple chances

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The government has decided to tweak the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016, and allow people declaring their undisclosed incomes to make deposits under it on one or more occasions, the finance ministry said on Tuesday. The move will make it possible for people who may have under-reported their undisclosed incomes to come clean before the deposit window under this scheme closes on March 31.

Earlier, the scheme had mandated that the deposits be made only “in a single payment”. The deposits, which must not be less than 25% of the declared undisclosed income of an individual, can be made at banks authorised by the government.

Deposits under this scheme will attract a 50% charge, which includes a 30% tax, a 10% penalty and the Pradhan Mantri Garib Kalyan Cess (at 33% of the tax). The PMGKDS was announced in December last year, over a month after demonetisation, as the government wanted to give one more chance to people to declare their undisclosed income following the closure of the earlier income disclosure scheme.