Your undisclosed income is a time bomb! That’s the message from Prime Minister Narendra Modi-led NDA government on June 1, the day that its Income Declaration scheme 2016 (IDS) comes into effect.
It is a one time opportunity to all persons who have not declared income in early years, to come forward and declare such undisclosed income.
Here are the the salient features of the scheme:
-Scheme to apply to undisclosed income in form of assets or otherwise pertaining to FY 2015-16 for earlier years.
-Fair market value of the asset as on 1.6.2016 deemed to be the undisclosed income
-Tax, surcharge and penalty are payable at 45% of the income declared under the scheme.
-The assets declared will be exempt from Wealth Tax
-No scrutiny under Income Tax Act/ Wealth Tax act in respect to such declarations
-Immunity from prosecution under Income Tax Act/ Wealth TAx Act.
-Immunity from Benaami transactions (Prohibition) Act 1988, subject to certain conditions
-Declaratiion to made from June 1 2016 to 30th Septemeber 2016
-Tax, surcharge & penalty to be paid by 30th November 2016.
Mode of making declaration:
-Either online or to jurisdictional Pr. Commissioner/ Commisioner of I-T.
PM Narendra Modi also tweeted a picture of this scheme asking everyone to follow it as this can be a great service to the nation.
Follow this scheme & forward details about the scheme to others too…this can be a great service to the nation. pic.twitter.com/fTGhjTXqKq
— Narendra Modi (@narendramodi) June 1, 2016
The scheme was announced by Finance Minister Arun Jaitley in the Budget with an aim to fish out black money from the domestic economy. Earlier, the government had come out with similar scheme for Indian holding undisclosed income abroad.