1. Income Declaration Scheme 2016, part-payment of tax and penalty would make declaration invalid: CBDT

Income Declaration Scheme 2016, part-payment of tax and penalty would make declaration invalid: CBDT

The income tax department has said in a situation where search has been conducted on a person in but time for issuance of notice has not expired, the person shall not be eligible to avail the scheme in respect of assessment years for which notice under section 153A can be issued.

By: | Published: June 28, 2016 1:10 PM
Switzerland, black money, tax havens, Narendra Modi, stolen data, swiss bank On whether a valuation report of an asset is mandatory, the CBDT has said it is necessary for the declarant to obtain the valuation report but it is not mandatory for him to attach the same with the declaration made in Form-1.

In a set of clarification issued on the Income Declaration Scheme, 2016, the Central Board of Direct Taxes (CBDT) has said that in case a declarant has made only part-payment of the tax, surcharge and penalty payable on undisclosed income declared under the scheme, the entire declaration will be deemed invalid.

“The declaration under the Scheme shall be valid only when the complete payment of tax, surcharge and penalty is made on or before November 30, 2016,” CBDT has clarified.

It has said that the scheme is valid for both resident or non-resident Indians.

The income tax department has said in a situation where search has been conducted on a person in but time for issuance of notice has not expired, the person shall not be eligible to avail the scheme in respect of assessment years for which notice under section 153A can be issued.

On whether a valuation report of an asset is mandatory, the CBDT has said it is necessary for the declarant to obtain the valuation report but it is not mandatory for him to attach the same with the declaration made in Form-1.

However, the tax officer may require the declarant to file the valuation report before issuing the acknowledgment in Form-2. In such a circumstance, it will be necessary for the declarant to make the report available to the officer concerned.

Also, a person whose proceeding is pending before the Settlement Commission, is not eligible for the scheme in respect of assessment years for which proceeding is pending.

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