Income Declaration Scheme 2016: Will kick start from 1st June 2016 [ Current Affairs ]

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From 1st June 2016 the Income Declaration Scheme 2016 or four month window for announcement of domestic black money shall come into effect. The window offers an occasion to all people who have not professed income properly in former years to come onward and state their secret incomes.

Under this scheme:

  • The professed income wanted to be taxed at the rate of 30 per cent plus ‘Krishi Kalyan’ cess of 25 per cent on taxes payable and a consequence at the rate of 25 per cent of the taxes allocated.
  • Thus the total tax to be rewarded will be 45 % of the revenue professed under the scheme.
  • The statements can be trooped online or with the Principal Commissioners of Income-tax.
  • By 30th November 2016 the supplement and disadvantage must be paid.
  • Resources quantified in the statement will be excused from Wealth tax.
  • These statements will also enjoy protection from examination under the IT Act and Wealth Tax Act and also the Benami Transactions (Prohibition) Act, 1988.
  • Non-payment of total taxes, drawback and supplement in time or statement by caricature or suppression of facts shall render the declaration void.
  • Other strict significances will also follow accordingly.
  • The scheme is part of Finance Act, 2016 and will continue in force till 30th September.
  • Foreign properties or income to which the Black Money Act 2015 applies are not qualified for announcement under this scheme.

- Published on: May 16, 2016