HYDERABAD: A division bench of the Hyderabad High Court has directed the Income Tax authorities to allow a Hyderabad-based lady doctor to utilise the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY), a scheme introduced by the Centre in December last year after demonetisation, by relaxing a few conditions of the scheme in the case of the doctor.
After demonetisation of high value currency notes in November last year, doctor Indira Ajay deposited Rs 11.18 crore of old cash in three of her bank accounts in Dec 2016. The doctor showed it as income for the year 2017-18 and had paid an advance tax of Rs 3.15 crore. After launch of PMGKY scheme that allows individuals to legalise their unaccounted old cash, she wanted to utilise the scheme.
However, she realised that there are several hurdles to avail the scheme. To become eligible for the scheme she has to now borrow Rs 83 lakh and deposit it in the bank. She moved the High Court for relief.
The bench directed the IT authorities to treat the seized currency as tax, cess, penalty and so on instead of asking the doctor to get all this from outside.