New Delhi: The four-month window under the Income Declaration Scheme 2016 opened today and Prime Minister Narendra Modi had this message for tax evaders: “Your undisclosed income is a time bomb!”
The scheme was announced by the Finance Minister Arun Jaitley in the 2016 Budget with an aim to clear the menace black money from domestic economy.
The declaration scheme is a one-time opportunity for those who have not yet declared their income in early years, to come forward and declare the undisclosed income.
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Here are some of the important features of the Income Declaration scheme 2016:
· The undisclosed income has to be applied in the form of assets or otherwise pertaining to FY 2015-16 for earlier years.
· Fair market value of the asset as on 1.6.2016 will be considered as the undisclosed income
· Under the scheme tax, surcharge and penalty are payable at 45 per cent of the income declared.
· The assets declared will be excused from Wealth Tax
· On the declarations, no scrutiny under Income Tax Act/ Wealth Tax act will be followed.
· The declaration will be a protection from prosecution under Income Tax Act/ Wealth TAx Ac and also from Benaami transactions (Prohibition) Act 1988, subject to certain conditions
· The declaration has to be made between June 1, 2016 and September 30, 2016; while the tax, surcharge and penalty has to be paid by November 30, 2016.
· The declaration should be made online or to jurisdictional Pr. Commissioner/ Commisioner of I-T.
