Under Income Declaration Scheme (IDS), individuals can declare tax if they have not disclosed in previous years.
If they miss the deadline of September 30, 2016, the consequences includes, interest, penalty & prosecution under I-T Act.
Here are 6 advantages if a valid declaration has been made:
1 The amount of undisclosed income declared will not be included in the total income under the Income-tax Act for any assessment year.
2 The contents of the declaration will not be admissible in evidence against the declarant in any penalty or prosecution proceedings under the Income-tax Act and the Wealth Tax Act.
3 Immunity from the Benami Transactions (Prohibition) Act, 1988 will be available in respect of the assets disclosed in the declarations subject to the condition that the benamidar shall transfer to the declarant or his legal representative the asset in respect of which the declaration of undisclosed income is made on or before 30th September, 2017.
4 The value of asset declared in the declaration shall not be chargeable to Wealth-tax for any assessment year or years.
5 Tax payer should note that declaration of undisclosed income will not affect the finality of completed assessments.
6 The declarant will not be entitled to claim re-assessment of any earlier year or revision of any order or any benefit or set off or relief in any appeal or proceedings under the Income-tax Act in respect of declared undisclosed income or any tax, surcharge or penalty paid thereon.