There is less than a month to go before the four-month Income Declaration Scheme, 2016, is shut and if you are still undecided whether to come clean with your undisclosed income in the past, get your act together.
Finance Minister Arun Jaitley has ruled out a second chance for those who fail to avail of the opportunity. The Income Declaration Scheme, 2106 (IDS), which opened on June 1, will come to a close on September 30.
Under the scheme, those who have undisclosed income in the past can pay tax and penalties amounting to 45 per cent of the amount and enjoy the remaining.
Jaitley gave the example of the compliance window opened by the government under the 2015 law to unearth black money held overseas by India taxpayers. “Around 600-700 who came forward to comply with the law are now sleeping well. Subsequently, details are emerging on those did not avail of the 2015 scheme. There are queries being made by those who did not come forward on whether another compliance window will be opened by the government. The answer is ‘no’. Those who don’t comply with the law will have to face the consequences. This is precisely what is going to be the case as far as (disclosure of ) domestic assets are concerned,” Jaitley said at a interactive function on IDS and the Sovereign Gold Bond Scheme, organised by FICCI and ICAI.
The Finance Minister said that the revenue department is aware of the cases of hidden income. “It is not that the revenue network will not be aware of what is going on,” Jaitley said.
Urging domestic black money holders to come clean and ‘sleep well’, Jaitley pointed out that the Central Board of Direct Taxes (CBDT) has already assured that information of declarants will be confidential. “CBDT has clarified that there will be complete confidentiality under IDS, 2016,” Jaitley said.