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Income Declaration Scheme 2016 for domestic black money to commence from June 01

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Finance Ministry announced that the Income Declaration Scheme 2016 will remain functioning till September 30 for filing of Declarations and Payments towards

black money

 

♦ Taxes
♦ Surcharge
♦ Penalty

The following payments must be made latest by November 30.

  • Declarations can be filed online or with the Principal Commissioners of Income-tax
  • Assets specified in the declaration will be exempted from Wealth tax
  • Non-payment of total taxes, surcharge and penalty in time or declaration by misrepresentation or suppression of facts shall render the declaration void

The four month window:

Declaration of domestic black money will start on June 1 and those opting to come clean by paying 45 per cent tax and penalty, will not be subjected to scrutiny and enquiry by tax department.

The Income Declaration Scheme 2016

  • No scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken
  • 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.
  • Announced by Finance Minister ArunJaitley during the Budget session

Aim: To fish out black money from the domestic economy

Earlier scheme by Finance Ministry:

  • The government had already come out with similar scheme for Indian holding undisclosed income abroad
  • The scheme is part of Finance Act, 2016
  • The scheme will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to Financial Year 2015-16 or earlier
  • Declared by the eligible persons
  • India would be taxed at the rate of 30 per cent
  • KrishiKalyanCess of 25 per cent on the taxes payable
  • Penalty at the rate of 25 per cent of the taxes payable
  • Totaling to 45 per cent of the income declared under the scheme