1. Income Disclosure Scheme: Directors, partners of firms coming clean to enjoy immunity

Income Disclosure Scheme: Directors, partners of firms coming clean to enjoy immunity

The Income-tax department has said that director and partners of companies that choose to come clean with their undisclosed income under the Income Declaration Scheme, 2016, would enjoy immunity as provided by the scheme.

By: | New Delhi | Updated: July 14, 2016 11:49 AM
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The Income Declaration Scheme provides a four-month window for those with undisclosed income to make the necessary disclosure to the I-T authorities and pay tax (including penalty of 45 per cent) of the amount and enjoy the rest without any harassment. The government is going all out to make the scheme a success. (AP)

The Income-tax department has said that director and partners of companies that choose to come clean with their undisclosed income under the Income Declaration Scheme, 2016, would enjoy immunity as provided by the scheme.

In a clarification issued on Thursday, the Central Board of Direct Taxes (CBDT) has said, “ immunity to the directors or the partners, as the case may be, shall be available in respect of the undisclosed income declared under the Scheme by the company or partnership firm.”

Also, providing further assurance against harassment on the disclosures made, CBDT has said that specific instructions have been issued an order on July 6, 2016, to its officials not to share any information declared under the scheme with any other enforcement agency. “An order has been passed by the Central Government directing that no public servant shall produce before any person or authority any such document or record or any information or computerized data or part thereof as comes into his possession during the discharge of official duties in respect of a valid declaration made under the Scheme,” the CBDT has said.

The Income Declaration Scheme provides a four-month window for those with undisclosed income to make the necessary disclosure to the I-T authorities and pay tax (including penalty of 45 per cent) of the amount and enjoy the rest without any harassment. The government is going all out to make the scheme a success.

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