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

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
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