The Govt has allowed use of old bank notes of 500 and 1,000 rupees for payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan ​​Yojana (PMGKY) till 30th of this month.

Finance Ministry in a statement said, the Taxation and Investment Regime for PMGKY, 2016 has come into effect form 17th of this month and is open for declarations upto 31st March, 2017.

The payment of tax, surcharge and penalty under the Scheme is to be made through challan and the deposits are to be made in the scheme. The scheme allows assessees to disclose previously unaccounted and undeclared income under its ambit.

The PMGKY permits voluntary declarations of previously undisclosed income with an effective tax rate of 50 per cent and requires assessees to deposit a further 25 per cent of such wealth into a four-year interest-free deposit. #casansaar (NewsonAir)