Income Declaration Scheme shall be in force for four months
starting June’2016. This scheme was announced during Budget 2016. It was
incorporated as Chapter IX of the Finance Act 2016. It is an opportunity to all
persons who have not declared their income correctly in earlier years. They can
come forward and declare such undisclosed incomes. It will not applicable to
the individuals who have foreign assets or income to which Black Money Act 2015
applies.
According to the press release, 'Under the Scheme, such income
as declared by the eligible persons, would be taxed at the rate of 30% plus a
'Krishi Kalyan Cess' of 25% on the taxes payable and a penalty at the rate of
25% of the taxes payable, thereby totaling to 45% of the income declared under
the scheme.'
Declarations can be filed online or with the
jurisdictional Pr. Commissioners of Income-tax.
There
will be no scrutiny and enquiry under the Income-tax Act or the wealth tax Act
shall be undertaken with respect of such declarations.
Neeraj Bhagat & Company is a renowned chartered
accountant firm in New Delhi, India.
