In order to bring into effective use all black money the government has provided a scheme for the erring taxpayers. The assessee is given an opportunity to pay 45% tax on his/her undisclosed income via a new Income Declaration Scheme.
Income Tax Declaration Scheme 2016 - Disclose Black Money
The income declared by eligible persons will be, under the scheme, taxed at 30% in addition to a 'Krishi Kalyan Cess' of 25% on the taxes that is payable along with a penalty rate of 25% of the taxes payable. The total tax payable under this scheme works out to 45% of the income declared.
Timelines to declare Black Money
- The Scheme will start from 1 June 2016 and will be continuing up to 30 September 2016 for the declaration to be made.
- The tax that is applicable including cess and penalty has to be paid on or prior to 30 November 2016.
Features of the new scheme
Below are the attributes of the Income Tax Declaration Scheme:
- The scheme applies to unrevealed income whether it is in the form of asset investment or something else, relating to Financial Year 2015-16 or prior.
- Where the declaration is in the form of asset investment, the Fair Market Value of such resource as on first June 2016 might be esteemed to be the unrevealed income under the Scheme. Be that as it may, outside resources or income to which the Black Money Act 2015 applies are not qualified for assertion under this scheme.
- Assets indicated in the revelation will be exempt from Wealth tax.
- No Scrutiny or even enquiry under the Income-tax Act or the Wealth tax Act should be attempted with regard to such declarations.
- Immunity from indictment under the Income-tax Act and Wealth Tax Act is additionally given along with immunity from the Benami Transactions (Prohibition) Act, 1988 dependent on exchange of resource to real owner within such periods as indicated in the Rules.
- Non-payment of aggregate taxes, extra charges and penalty in time or affirmation by distortion or concealment of certainties will render the declaration void.
- The situations in which the Scheme is not applicable or where a man is held to be not entitled are indicated in section 196 (Chapter IX) of the Finance Act, 2016.
- Non declaration of unrevealed income under the Scheme will make such secret income accountable to tax in the earlier year in which it is discovered by the Income tax Department. Other corrective outcomes will likewise follow as needs be.
The carry aways of Income Tax Declaration Scheme
The Scheme without a doubt gives a onetime chance to declarants to tell the truth by paying 45% as tax, to the administration. Any concealment of certainties and/or data may bring about the declaration being considered as void. In that occasion, despite the fact that the declarant may not be subjected to any corrective outcomes under the Scheme, the data submitted might be utilized by the revenue authorities for evaluation/re-appraisal of income under the current procurements of the Act or/and Wealth-tax Act.