The Narendra Modi government today announced a revised time schedule for making payments under its Income Declaration Scheme 2016. A notification to this effect shall be issued shortly, said a Ministry of Finance press release.
The revision comes after the government took cognizance of concerns expressed by various stakeholders that the time period available under the Scheme up to November 30, 2016 for making payment of tax, surcharge and penalty is “very short”.
According to the stakeholders the time period that was announced by the government is short, especially where funds in liquid form are not readily available with the declarants. Some have also pointed out that to make the payment by November 30, the declarants may have to opt for distress sale of the assets.
With this in mind, and owing to the practical difficulties of the stakeholders, the government has revised the time schedule for making payments under the Scheme as:
- Minimum amount of 25% of the tax, surcharge and penalty to be paid by November 30, 2016
- Further amount of 25% of the tax, surcharge and penalty to be paid by March 31, 2017
- The balance amount to be paid on or before September 30, 2017.
Last week, Central Board of Direct Taxes (CBDT) said that the information provided to the Income Tax Department under the Income Declaration Scheme, 2016, will not be shared with any other tax or law enforcement agency.
In a set of clarifications to clear doubts on IDS, 2016, CBDT has said that information will also not be shared within the Income Tax Department for any investigation in respect of a valid declaration.
Your undisclosed income is a time bomb! That’s the message that Prime Minister Narendra Modi-led NDA government put out on June 1, the day that its Income Declaration scheme 2016 (IDS) came into effect.
The declaration has to be made by September 30, 2016.