Income Declaration Scheme 2016: Modi wants you to reveal your undeclared wealth; All you need to know

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Updated: June 27, 2016 12:00:35 AM

Prime Minister Narendra Modi in the 21st edition of his 'Mann Ki Baat' on Sunday asked people to declare their undisclosed income by September 30

The Prime Minister in the 21st edition of his 'Mann Ki Baat' on Sunday asked people to declare their undisclosed income by September 30 (Reuters)The Prime Minister in the 21st edition of his ‘Mann Ki Baat’ on Sunday asked people to declare their undisclosed income by September 30 (Reuters)

Prime Minister Narendra Modi, in the 21st edition of his ‘Mann Ki Baat’ on Sunday, asked people to declare their undisclosed income by September 30, making it clear that this is the last chance to avoid problems that will follow after the window of opportunity closes.

“For those having undisclosed income, the government has provided a special chance to declare it by September 30,” Modi said in his monthly radio programme ‘Mann Ki Baat’.

For this same, the government has launched Income Declaration Scheme 2016, whereby an opportunity has been given to those who didn’t disclose income or pay taxes thereon in the past.

The government is providing a 4-month window of opportunity which started in June 1, 2016, to tax evaders to gain amnesty by coming clean under the scheme by paying 45 per cent tax.

In reference to Income Declaration Scheme 2016, Prime Minister Narendra Modi on Sunday said, “For once, dispose off the baggage of the past.”

Income Declaration Scheme 2016 is a one time opportunity to all persons, who have not declared income correctly in earlier years, to come forward and declare such undisclosed income.

For those of you who don’t already know, here is all you need to know about  Income Declaration Scheme 2016:

Salient features of Scheme:

* Scheme to apply to undisclosed income in form of assets or otherwise pertaining to FY 2015-16 or earlier years.
* Fair Market value of the asset as on 01.06.2016 deemed to be the undisclosed income.
* Tax, surcharge & penalty are payable at 45% of the Income declared under the scheme.

Immunity

* Assets declared exempt from Wealth Tax
* No scrutiny/enquiry under Income-Tax Act/Wealth-tax Act in respect of such declarations.
* Immunity from prosecution under Income-Tax Act/Wealth tax Act
* Immunity from Benami Transactions (Prohibition) Act, 1988 subject to certain conditions.

Compliance Window

*Declaration to be made from 1st June, 2016 to 30th September, 2016
*Tax, surcharge and penalty to be paid by 30th November, 2016

Mode of Making Declaration
* To be filed online or
*To jurisdictional PR. Commissioner/Commissioner of Income-tax

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