The CBDT today issued a fresh clarification exempting those who declare untaxed assets or income under the ongoing black money declaration window from enquiry during future raids.
With exactly a month for the window to close, the Central Board of Direct Taxes (CBDT)– the policy-making body of the I-T department– said it is reiterating the stated policy to “allay apprehensions” in this regard of possible Income Declaration Scheme (IDS) declarants.
“It is clarified that wherever in the course of search under section 132 or survey operation under section 133A of Income Tax Act, 1961, any document is found as a proof for having already filed a declaration under the Scheme, including acknowledgment issued by the Income Tax Department for having filed a declaration, no enquiry would be made by the Income Tax Department in respect of sources of undisclosed income or investment in movable or immovable property declared in a valid declaration made in accordance with the provisions of the Scheme (IDS),” the circular said.
The Board had already clarified this position in its earlier clarifications or the Frequently Asked Questions (FAQs).
It has issued five sets of FAQs, containing answers to various questions on the implementation of the IDS, till now.
The government, sometime back, had extended the deadline for payment of tax and penalty under IDS and allowed declarants to pay the amount in three instalments by September 30 next year.
The first instalment of 25 per cent under the IDS 2016 will have to be paid by November, followed by another 25 per cent by March 31, 2017.
The remaining amount will have to be paid to the exchequer by September 30, 2017.
Earlier the tax, surcharge and penalty under the black money disclosure window were required to be paid by November 30.
The scheme was announced by the government with an aim to bring out black money from the domestic economy.
The government had come out with a similar scheme for Indians holding undisclosed income abroad.
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.