PRESS RELEASE, DATED 14-5-2016
The
Income Declaration Scheme, 2016 incorporated as Chapter IX of the
Finance Act 2016 provides an opportunity to all persons who have not
declared income correctly in earlier years to come forward
and declare
such undisclosed income(s).
Under the Scheme, such income as
declared by the eligible persons, would be taxed at the rate of 30% plus
a 'Krishi Kalyan Cess'of 25% on the taxes payable and a penalty at the
rate of 25% of the taxes payable, thereby totalling to 45% of the income
declared under the scheme.
The scheme shall remain in force for a
period of 4 months from 1st June, 2016 to 30th September, 2016for
filing of declarations and payments towards taxes, surcharge &
penalty must be made latest by 30th November, 2016. Declarations can be
filed online or with the jurisdictional Pr. Commissioners of Income-tax
across the country.
♦
The
scheme shall apply to undisclosed income whether in the form of
investment in assets or otherwise, pertaining to Financial Year 2015-16
or earlier.
♦
Where
the declaration is in the form of investment in assets, the Fair Market
Value of such asset as on 1st June 2016 shall be deemed to be the
undisclosed income under the Scheme. However, foreign assets or income
to which the Black Money Act 2015 applies are not eligible for
declaration under this scheme.
♦
Assets specified in the declaration shall be exempt from Wealth tax.
♦
No Scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken in respect of such declarations.
♦
Immunity
from prosecution under the Income-tax Act and Wealth Tax Act is also
provided along with immunity from the Benami Transactions (Prohibition)
Act, 1988 subject to transfer of asset to actual owner within the period
specified in the Rules.
♦
Non-payment
of total taxes, surcharge & penalty in time or declaration by
misrepresentation or suppression of facts shall render the declaration
void.
♦
The
circumstances in which the Scheme shall not apply or where a person is
held to be ineligible are specified in section 196 (Chapter IX) of the
Finance Act, 2016.
♦ Non-declaration
of undisclosed income under the Scheme, will render such undisclosed
income liable to tax in the previous year in which it is detected by the
Income tax Department. Other penal consequences will also follow
accordingly.
The
full text of the Scheme is available on the departmental website
www.incometaxindia.gov.in for viewing. The relevant rules and forms for
the same are to be notified shortly.