PMGKY strikes it rich with Rs246-cr deposit in TN man's Indian Overseas Bank account

The Prime Minister's Garib Kalyan Yojana, the latest lure for black money holders to come clean, made a big catch in Tamil Nadu with the Indian Overseas Bank (IOB) branch in Tiruchengode in Namakkal district receiving a deposit of Rs246 crore.

The cash deposited by the individual is part of the Rs600 crore deposited in 200-odd deposits of old demonetised currency across bank branches in Tamil Nadu and Puducherry after the 8 November demonetisation of high denomination bank notes.

Reports quoting income tax sources said most of the accounts in which such deposits were made are in rural Tamil Nadu, other than in Chennai and its suburbs.

The Rs246-crore deposit was reported from the rural branch of IOB in Tiruchengode in Namakkal district and the bank is in the process of tracking the depositor.

According to the bank, the man played elusive, but after a few days he agreed to join the Pradhan Mantri Garib Kalyan Yojana (PMGKY) and pay 45 per cent of the total money as tax.

Under the PMGKY, deposits of unaccounted cash will get legitimacy on payment of 45-per cent tax and a 10 per cent surcharge thereon. Besides, the depositor will have to keep 25 per cent of the money in a non-interest-bearing deposit with the government.

But if we the money was found to be totally unaccounted without any source, then the total tax will be around 83.5 per cent.

With a 50-per cent tax, the deposit will yield Rs123-crore in revenue in addition to interest-free deposit of over Rs60 crore.

According to income tax sources, there are several similar cases of individuals and companies depositing cash in their accounts and accepting these as unaccounted income.

Most of them have also opted for the PMGKY scheme, which closes on 31 March 2017.

The money accumulated through taxes will be utilised for welfare and security of the nation.

After the 31 December 2016 deadline for depositing all old demonetised currency, banks in the country were told to send the list of account holders who had deposited cash above Rs2.5 lakh after demonetisation.

A scrutiny of the deposits list from TN and Puducherry, 8.5 million such bank transactions with PAN numbers.

Across TN and Puducherry, the I-T Department found 28,000 accounts to be suspicious and some of the accounts had deposits in cash to the tune of Rs85 lakh or more.