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