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Pradhan Mantri Garib Kalyan Yojana

Along with the other provisions of the Taxation Laws (Second Amendment) Act, 2016, Prime Minister Narendra Modi launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) in 2016. On December 17, 2016, it came into effect under the Ministry of Finance. The government took action in response to the loss caused by the pandemic. The Coronavirus-related lockdown is expected to cost the Indian economy around 9 lakh crores....

Objectives of Pradhan Mantri Garib Kalyan Yojana:

The PMGKY was initially launched to recover black money from tax evaders by providing them with protection from legal action. The government provided a chance for tax evaders to disclose unaccounted income with a 49.9% tax rate under the PM Garib Kalyan Yojana scheme. The deposited amount was to be used to eliminate income inequality in the nation.  The government announced relief efforts during the COVID-19 pandemic with the scheme extension in 2020. The extension’s objective is to promote small businesses and avoid disrupting the employment of low-wage workers (with up to 100 employees). In accordance with the extension, the central government provides the full employees with EPF contributions (12% of the total wages) and employers’ EPF & EPS contributions (12% of wages), for three months, a total of 24% of the monthly wages.  The government also announced relief packages to help the poor through various initiatives. Ms. Nirmala Sitharaman, the Union Minister of Finance and Corporate Affairs, announced a relief package worth Rs. 1.70 lakh crore under the PMGKY....

Features of Pradhan Mantri Garib Kalyan Yojana:

PM Modi mentioned the extension of the PM Garib Kalyan Yojana to the end of November 2020 in his speech on June 30, 2020. He also mentioned that Rs. 31,000 crores had been deposited in the bank accounts of 20 crore poor families during the previous three months. Up to November 2020, free food grains were distributed to almost 80 crore poor people, each receiving 5 kg of wheat or rice and 1 kilogram of pulses. PMGKY’s extension cost Rs. 90 billion rupees. In response to the Covid-19 epidemic in India, the Finance Minister announced on March 26, 2020, a 1.7 lakh crore Garib Kalyan scheme to help the poor who were impacted by the coronavirus lockdown. The initiative’s initial validity period was from December 16, 2016, to March 31, 2017, and it was then extended until June 2020. The PMGKY gave an opportunity to secretly disclose unaccounted income and black money in order to escape prosecution after paying a fine of 50% of the undisclosed income. A further 25% of the undisclosed income is invested into the scheme, which is eligible for a four-year, interest-free reimbursement.  The Union Government of India announced on June 1st, 2021, that it had already extended the “Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for Health Workers Fighting COVID-19” for a further year, effective on April 24, 2021....

Benefits of Pradhan Mantri Garib Kalyan Yojana:

The package’s benefits were classified into two parts which are as follows:...

Related Frequently Asked Questions and Answers:

Q1. When was Pradhan Mantri Garib Kalyan Yojana launched?...