The central govt. came up with new INCOME DECLARATION SCHEME for the tax payers to disclose income which was never formed part of income tax return filed earlier which was ought to have been disclosed. The earlier congress govt. came up with similar scheme both for income tax and indirect taxes for assessees during its tenure.
The scheme details are as follows:
Items to be disclosed:
Undisclosed income in the form of Assets or in whatever form held pertaining to Financial Year 2015-16 or earlier years.
Value of Assets to be Disclosed:
Fair Market Value of the asset(s) to be disclosed, as on 01st June 2016 shall be deemed to be the undisclosed income.
Amount to be paid:
No penalties, no interests, a Flat rate of 45% of Undisclosed Income
Why to avail the Scheme (Immunity):
With Aadhar Card, Bank Accounts linked to PAN and with advanced techniques available with IT Department in tracing out all the sources of income, there are likely chances that you might get a Scrutiny Notice in case you have failed to disclose your income in any of the earlier years and once the Notice is sent, If not for this scheme, under the normal tax provisions and rules, the assessee has to pay following amounts w.r.t undisclosed income:
A. Normal Tax Rate pertaining to year in which the undisclosed income was earned.
B. Interests to be paid u/s 234A, B, C
C. Penalty u/s 271(1)(c)
The sum total of Tax, Interest and Penalty payable might actually be close to 100% of undisclosed income if you don’t opt for this scheme, and not just that there would be chaos with prosecutions, running around Assessing officer for Scrutiny Asst. The scheme provides assessess availing this scheme immunity from such high tax rates, prosecutions under Benami Transactions Act, Wealth Tax Act. Income Tax Act, it would be of best interest for an assesses to avail this scheme.
Due Date for Disclosing undisclosed income (Time Window):
Through Online e-filing facility you can declare undisclosed income starting 1st June 2016 to 30th September 2016
Payment of 45% Tax on Undisclosed must be made on or before 30th November 2016
Last updated 4th June 2016