Schemes Current Affairs

Union Cabinet approves Varishtha Pension Bima Yojana 2017

The Union Cabinet has given its approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017).  The scheme will be launched as part of Government’s commitment for financial inclusion and social security.

The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year i.e. FY 2016-17. It will be open for subscription for a period of one year from the date of launch.

Features of Scheme
  • The purpose of the scheme is to provide social security during old age and protect elderly persons aged 60 years and above against future fall in their interest income due to uncertain market conditions.
  • It will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly, quarterly, half yearly and annual basis.
  • The Union Government will bear the differential return i.e., the difference between the return generated by LIC and the assured return of 8% per annum as subsidy on an annual basis.

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Black money worth Rs. 65,250 crore declared under Income Disclosure Scheme, 2016

The Central Board of Direct Taxes (CBDT) has received total disclosure of Rs. 65,250 crore black money in the form of cash and other assets under the Income Disclosure Scheme, 2016.

The scheme launched in June 2016 has provided a one-time opportunity to those who had not paid full taxes in the past. It had provided four-month window for declaring undisclosed income or black money and ended on 30 September 2016.

Income Declaration Scheme

  • The scheme had provided a one-time opportunity to black money holders who had not paid full taxes in the past to come clean by declaring their domestic undisclosed income and assets.
  • Declaration were made in respect (i) Any undisclosed domestic income. (ii) Any investment in asset representing undisclosed income, upto financial year 2015-2016.
  • The undisclosed income or black money and assets declared was liable to total 45% tax of the undisclosed income.
  • Benefits of Declaration: (i) No wealth tax on asset declared. (ii) No enquiry under Income Tax Act or Wealth Tax Act. (iii) Immunity from the Benami Transaction (Prohibition) Act, 1988.
  • The scheme gave an opportunity to the defaulter to come clean by paying more than normal tax and did not reward the dishonest tax defaulters.

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