Response to Pradhan Mantri Garib Kalyan Yojana wasn’t very good, says government
Revenue Secretary Hasmukh Adhia said only Rs 5,000 crore in undisclosed income was declared under the post-demonetisation amnesty scheme.
The response to the Pradhan Mantri Garib Kalyan Yojana has not been very promising, Revenue Secretary Hasmukh Adhia said on Thursday, adding that only Rs 5,000 crore undisclosed income has been declared under amnesty scheme. “The response has not been so good,” he said during a press conference, according to PTI.
The government had launched scheme last year for tax evaders to come clean after it demonetised Rs 500 and Rs 1,000 notes in November. Under it, black money holders could declare the undisclosed income in the demonetised currency notes and pay a penalty of up to 50% of the funds.
Adhia said there were two reasons for the poor response to the scheme. “One, even before the scheme was announced people had tried to put their cash into different accounts,” he said. “The second was the [tax and penalty] rate.”
However, Finance Minister Arun Jaitley said the response should not been seen in isolation as there were several similar schemes prior to that. “You first had the Income Declaration Scheme…” he said at a press conference on Thursday. “...and then you had people depositing cash in banking system knowing it would incur a tax liability and this scheme was over and above that.” He said the total amount that was disclosed should be the collective amount of these three schemes.