The Income Declaration Scheme, 2016 is the latest scheme by the Income Tax Department which provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets.
The Scheme is open for a period from 1.6.2016 up to 30.9.2016 for declaration.
The amount payable under the Scheme can be paid in installments of 25% of the total amount which is payable by 30.11.2016; another 25% by 31.3.2017 and balance 50% by 30.9.2017.
The following are the major issues addressed in sixth set of circular (FAQs) as under:
No enquires after declaration
The information in respect of a valid declaration is confidential and shall neither be shared with any law enforcement agency nor shall be enquired into by the Income-tax Department.
No enquiry or investigation will be made in respect of the undisclosed income and assets declared under the scheme even if the evidence of same is found subsequently during course of search or survey proceedings.
Fair market price
The assets declared under the scheme are to be valued at cost of acquisition or at fair market price as on 1.6.2016 as determined by the registered valuer, whichever is higher.
However, an option for valuation of registered immovable property on the basis of stamp duty value of acquisition adjusted with the Cost Inflation Index has also been provided.
Credit for TDS
There will be a credit for unclaimed TDS made on declared income shall be allowed.
No capital gains tax or TDS
Neither any capital gains tax nor any TDS will be levied on transfer of declared benami property from benamidar to the declarant without consideration.
The amount of fictitious liabilities recorded in audited balance sheet and not linked to acquisition of an asset can be disclosed under the scheme as such.
The period of holding of declared registered immovable assets shall be taken on the basis of the actual date of registration.
The valuation report obtained by the declarant from a registered valuer shall not be questioned by the department. However, valuer's accountability will remain.
Cash deposit information
No adverse action shall be taken by FIU or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the Scheme.
An option has been provided to the declarants to file the declaration under the Scheme electronically under digital signature with the Commissioner of Income-tax, Centralised Processing Centre, Bengaluru (CPC).