The Income Tax Department on Thursday came out with forms through which black money holders would be required to disclose their undisclosed income under the Income Disclosure Scheme 2016 which came into effect from June 1.
The Income Tax Department on Thursday came out with forms through which black money holders would be required to disclose their undisclosed income under the Income Disclosure Scheme 2016 which came into effect from June 1. The scheme provides tax amnesty for tax evaders on their undisclosed income by paying a one-time tax of 45 per cent.
A quick glance through the form and the annexures show that the actual filling up of the details would not be much of a hassle. However, what may take time would be getting some of the undisclosed assets valued by valuers.
Here is what the new forms under the scheme hold. Form 1, which is the main form to be filled, is a simple one with personal details include name, address and contact details and PAN number. The declarant would be required to full in his/her status – whether they are individuals, Hindu Undivided Family (HUF), firm or company, resident Indian or an NRI.
The declarant will also have to provide details relating to assessment year for which declaration is made. This includes assessment year, whether I-T returns have been filed for the years and if yes, the I-T return and the acknowledgement number of returns have to be provided.
The form provides space for a consolidated statement of undisclosed income (which has to be provided in detailed in annexure 1). These would include total amount of declaration of undisclosed income, taxes payable @30 per cent of total amount of undisclosed income, surcharge of 25 per cent and penalty of another 25 per cent on tax payable.
The declarant would have to specify whether any tax has been paid in or before the date of declaration and calculate the balance tax payable.
Annexure 1 relates to statement of undisclosed income. Here the declarant has to first provide the details of assessment year of undisclosed income, amount of undisclosed income and nature of undisclosed income and total thereof. It has to be specified whether any of the above is in form of investment in assets and if so, the details of undisclosed investment in assets have to be provided along with the information whether the undisclosed investment has been credited in a bank and if it has, the bank details have to be provided.
The declarant has to be then provide details of investment in assets including immovable property (along with valuation), jewellery, diamond or other precious metals, artistic work, shares and securities, unquoted equity shares and other assets. The fair market value, total deductions on account of investment made and the net value for each have to be calculated and mentioned.
Once this is done, the declarant will have to verify and sign a declaration that the statements made is correct and complete and submit it to the concerned tax authorities along with the payment of 45 per cent of the net value of the undisclosed income.