1. Undisclosed income a time bomb! Modi government’s Income Declaration scheme 2016 opens: Salient features

Undisclosed income a time bomb! Modi government’s Income Declaration scheme 2016 opens: Salient features

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.

By: | Updated: June 8, 2016 11:06 AM
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. (FE Photo) 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. (FE Photo)

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.

Immunity:

-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

Compliance Window

-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.

 

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.

  1. S
    Simranjeet Singh
    Jun 1, 2016 at 6:46 pm
    The said scheme has been challenged by lawyers in Chandigarh high court. see this
    Reply
  2. U
    umakant
    Jun 1, 2016 at 7:57 am
    Very good move by government, this will help to curb the black money which is in result more tax will pay by tax payer.
    Reply
  3. P
    Prashant P
    Jul 22, 2016 at 1:13 pm
    You pay my share of 45% and you are no more a thief
    Reply
  4. R
    R. Singh
    Jun 1, 2016 at 9:47 am
    Nehru hi Family have No Undisclosed ets
    Reply

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