Offer for Tax evaders who are worried about the demands and notices. You can now come clean and declare your income under The Income Declaration Scheme, 2016, pay 45 per cent to the authorities and relax.

An opportunity is proposed to be provided to persons who have not paid full taxes in the past to come forward and declare the undisclosed income and pay tax, surcharge and penalty totalling in all to 45% of such undisclosed income declared.

 

Offer proposes:

• applicable in respect of undisclosed income of any financial year upto 2015-16
• brought into effect from 1st June 2016 and will remain open up to the date to be notified by the Central Government in the official gazette.
• Tax shall be charged at the rate of 30% on the declared income plus surcharge 25% of tax payable (to be called the Krishi Kalyan cess). A penalty at the rate 25% of tax payable
• payment of tax, surcharge and penalty may be made on or before a date to be notified by the Central Government in the Official Gazette and non-payment up to the date so notified shall render the declaration made under the scheme void

 

 

Following cases shall not be eligible for the scheme:

• where notices have been issued under section 142(1) or 143(2) or 148 or 153A or 153C,
• where a search or survey has been conducted and the time for issuance of notice under the relevant provisions of the Act has not expired,
• where information is received under an agreement with foreign countries regarding such income, cases covered under the Black Money Act, 2015,
• persons notified under Special Court Act, 1992, or cases covered under Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988
• where a declaration under the scheme has been made by misrepresentation or suppression of facts, such declaration shall be treated as void

 

Benefits of declaration:

• declarations made under the scheme shall be exempt from wealth-tax in respect of assets specified in declaration
• no scrutiny and enquiry under the Income-tax Act and Wealth-tax Act be undertaken
• immunity from prosecution under such Acts be provided
• immunity from the Benami Transactions (Prohibition) Act, subject to certain conditions.

 

Points to be noted:

• Nothing contained in the Scheme shall be construed as conferring any benefit, concession or immunity on any person other than the person making the declaration under this Scheme.
• In cases where any declaration has been made but no tax and penalty referred to the scheme has been paid within the time specified, the undisclosed income shall be chargeable to tax under the Income-tax Act in the previous year in which such declaration is made.
• In cases where any income has accrued, arisen or received or any asset has been acquired out of such income prior to commencement of this Scheme, and no declaration in respect of such income is made under the Scheme such income shall be deemed to have accrued, arisen or received, or the value of the asset acquired out of such income shall be deemed to have been acquired or made, in the year in which a notice under section 142, section 143(2) or section 148 or section 153A or section 153C of the Income-tax Act is issued by the Assessing Officer and the provisions of the Income-tax Act shall apply accordingly.

 

 

Proposal to give effect to this Scheme:

• It is proposed that if any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty by an order not after the expiry of a period of two years from the date on which the provisions of this Scheme come into force and such order be laid before each House of Parliament.
• It is proposed that the Central Board of Direct Taxes under the control of Central Government be provided the power to make rules, by notification in the Official Gazette, for carrying out the provisions of this Scheme and such rules made be laid before each House of Parliament in the manner provided in the scheme.

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