The Central Board of Direct Taxes (CBDT) has provided clarification in details related to the queries of the Income Declaration Scheme, 2016 which has been incorporated as the Chapter IX to the Finance Act 2016. This Scheme provides an ease and opportunity again to all the persons who have not declared their income correctly in the passing years and wanted to take the step forward to declare such undisclosed income(s).
The unrevealed income can be in the form of investments in assets form or in another form and may relate to the previous financial year or earlier. However, the income in the form of foreign assets or investment will be taken in the Black Money Act 2015 and no rules will be applicable to this Income Declaration Scheme.
According to the press release, ‘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 totaling to 45% of the income declared under the scheme.’
Declarations filling can be done via online or with the jurisdictional Pr. Commissioners of Income-tax throughout the country. The scheme shall remain in effect from 1st June 2016 to 30th September 2016 for the filing of declarations and payment dues towards taxes. After the given time period, surcharge and penalty must be applied latest by the 30th November 2016.
Few of the provided relaxations of Income Declaration Schemes are that no examination and enquiry shall be undertaken in such declaration under the Income-tax Act or the Wealth-tax Act and the immunity from the Benami Transactions (Prohibition) Act also be provided.
Source: businesstoday.in
