Pradhan Mantri Garib Kalyan Deposit Scheme Yojana | PMGKY

Pradhan Mantri Garib Kalyan Deposit Scheme Yojana 

One of the main things, highlighted in the election manifesto of the BJP was to stop the circulation and build-up of black money in the financial sectors. This would assist in the development of the overall economic scenario of the nation. This interested the common people, and thus, they voted the party to power. Once Narendra Modi became the Prime Minister of the country, he brought forward the demonetization scheme. This came as a huge blow to the people who have amassed huge amounts of illegal money. Overnight, the country was gripped by the demonetization fever. Though this created some problems for the common people, with time, the issues subsided. The government was able to recover huge amounts of black money that were rolling in the financial sectors.

Launch details of the Garib Kalyan Yojana

The Prime Minister Garib Kalyan Yojana was declared by the BJP government, headed by Prime Minister Narendra Modi, on the 17th of December, 2016. The scheme was implemented on a nationwide basis. According to the government reports, the implementation of the scheme must be completed by the 31st of March, 2017.

Aims of the Garib Kalyan Yojana

The main aim of the Prime Minister Garib Kalyan Yojana, popularly known as the PNGKY, was to give the black money holders a chance to come forward and declare about their illegal wealth. Though it seemed irrational at first glance, the government maintained that the scheme would encourage the people to declare their unaccounted wealth to get a pardon from the law. The scheme was implemented to highlight the fact that black money holders will get respite from being charged under the harsher laws of the land against black money.

Objectives of the Garib Kalyan Yojana

The following are some of the important objectives of the PMGKY:

  1. No one came forward and declared the amount of illegal wealth that they have amassed over the time. All this money is kept out of the tax slabs. Thus, the development of the overall nation was getting hindered. With the implementation of the demonetization scheme, there was no way for the people to hide it or change into white money. The PMGYK was implemented to encourage the people to declare the amount on their own.
  2. The punishment and penalty on holding illegal wealth are very harsh in the country. Under this scheme, the people who declare their illegal wealth will be pardoned from facing harsh charges.
  3. The amount that will come into the coffers of the government, after the program was implemented was to be used for the overall development of the nation. Most of the money will be used in bringing about reforms for the improvement of the underprivileged sections of the society.

Features of the Garib Kalyan Yojana

The following are the salient features of the PMGKY:

  1. This scheme was implemented with a two-pronged objective: deceleration of illegal money and development of the nation. Under the first objective, the government announced that anyone who will come forward and declare their black money would be charged 50% of the total sum they are declaring. The division of the 50% tax will be made as 30% on the income of the person, 33% will be charged for a surcharge, and 10% will be charged as the penalty for withholding such massive unaccounted for wealth.
  2. Apart from the 50% tax, the person declaring the wealth will be compelled to make a deposit of around 25% towards the PMGKY. This sum will be kept with the government, and the person will not be allowed to get it for a total of 4 years. After the specified span, the money will be returned to the owner. The person will not be entitled to getting any interest for the money that was deposited under the scheme.
  3. After all the necessary documentations have been furnished by the owner, the task of assessing the proof of legality with rest with the government departments. If the investigation shows that the person was holding on to black money, the government will charge them with higher rates of taxation.
  4. Though the person declaring the wealth will be granted pardon of some kind and his/her details will not be disclosed on any platform, the person may still be subjected to the criminal laws, which have been highlighted in the 199-O of this particular scheme.

Benefits of the Garib Kalyan Yojana

The following are the main benefits of the PMGKY:

  1. It is expected that the government will be able to recover a huge amount of money, as per the guidelines, laid down under the scheme. The first benefit of the scheme is that the government will be able to eliminate the chances of accumulation of wealth in the hands of a certain section. The government will also be able to stop the inflow of black money in the Indian economy.
  2. On the other hand, when the person is declaring the black money, the government will put taxes on it. Thus, a huge sum will come into the national coffers. This money can be utilized by the government in developing the situation of the poor and the underprivileged people.
  3. When the government gets their hands on the black money, they will be able to control the economic scenario of the nation. In due course of time, the overall GDP of the country will increase, and India will not have to depend too much on the loans for the World Banks.

Taxation slabs of the Garib Kalyan Yojana

The taxation policy of the scheme will be different for those who disclose their illegal earnings and those who withhold it. If a person is interested in getting the pardon for the government, then they will have to place the total record of the illegally collected wealth. The government will charge them with a tax of 50%, and an additional 25% of the entire sum must be deposited in the zero-interest PMGKY.

For those who will not disclose all the date, associated with the illegal earnings, the government will charge them under the criminal acts. They will be charged with a tax rate of 85%. If they try to hide the money by transferring it to the bank account and then show it as a taxable amount, the government will charge a tax of 77.25% on the entire amount.

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