Question: On which of the following day does the Income Declaration Scheme-2016 will be started?
(a) 31 May 2016
(b) 1 June 2016
(c) 10 June 2016
(d) 2 July 2016
Ans: (b)
Related facts:
- On 14 May 2016 Ministry of Finance has launched Income Declaration Scheme, 2016 to provide an opportunity to all persons who have not declared income correctly in earlier years to come forward and declare such undisclosed income(s).
- The scheme shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 for filing of declarations.
- The payments towards taxes, surcharge & penalty must be made latest by 30th November, 2016.
- 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 totalling to 45% of the income declared under the scheme.
- The scheme shall apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to Financial Year 2015-16 or earlier.
- Foreign assets or income to which the Black Money Act 2015 applies are not eligible for declaration under this scheme.
- Assets specified in the declaration shall be exempt from Wealth tax.
- No Scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken in respect of such declarations.
- Immunity from prosecution under the Income-tax Act and Wealth Tax Act is also provided along with immunity from the Benami Transactions (Prohibition) Act, 1988 subject to transfer of asset to actual owner within the period specified in the Rules.
- Non-payment of total taxes, surcharge & penalty in time or declaration by misrepresentation or suppression of facts shall render the declaration void.
- Non declaration of undisclosed income under the Scheme will render such undisclosed income liable to tax in the previous year in which it is detected by the Income tax Department. Other penal consequences will also follow accordingly.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=145360
http://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/469/press-release-DRS-IDS-2016-Queries-12-05-2016.pdf