PMGKY ends on 31 March: Tamil Nadu man makes whopping Rs 246 cr banned notes deposit

With the black money window of PMGKY set to close on 31 March, an individual in in Tiruchengode in Namakkal district of Tamil Nadu has deposited Rs 246 crore worth of banned Rs 500 and Rs 1000 under the scheme, reports the DNA newspaper.This could be the largest deposit under the scheme in the state, if not in the country, says the report.[caption id="attachment_3147688" align="alignleft" width="380"] Representational image. PTI[/caption]The PMGKY scheme is an amnesty scheme devised by the government in December 2016 aimed at encouraging tax evaders who are stuck with banned notes in the wake of demonetisation.A person or entity who opts for PMGKY will have to pay 49.9 percent tax on the income, whereas a person who does not opt for the scheme but offers his black income in his Income Tax Returns will face a tax and penalty rate of 77.25 percent, and one who does not offer his stash funds under the scheme but is caught with undisclosed income in scrutiny assessment will face 83.25 percent tax rate.For those who do not declare their stash under the PMGKY and are raided will face 107.25 percent tax and penalty if the undisclosed income is surrendered during the action, while those who do not surrender such hidden income even during searches will stand to face the highest level of penalty and tax at 137.25 percent.The I-T department recently warned the stash holders to avail the scheme or face stringent action under Benami laws and also said the defaulters' names will be shared with the central probe agencies.With PTI inputs