Honourable Finance Minister had proposed to introduce a limited period ‘Tax compliance window’ for taxpayers to disclose undeclared income of previous years as a part of Finance Bill 2016.
Ministry of Finance has issued a notification enacting Income Declaration Rules, 2016 w.e.f 1st June, 2016. The scheme provides an opportunity to taxpayers to declare the income/assets not disclosed in earlier years on which taxes have not been paid.
- A declaration of any income or income in the form of investment in an asset can be made in Form1 electronically or through a physical form to the concerned jurisdictional commissioner.
- Declaration can be made at any time on or after 1st June 2016 to 30th September 2016.
- Such undisclosed income/assets will be taxed at 45% in total including tax, surcharge and penalty.
- The entire amount of tax, surcharge and penalty on undisclosed income has to be deposited within 30th November 2016.
- An acknowledgment will be issued within 15 days to the taxpayer in Form-2, within 15 days from the end of the month in which declaration is made.
The Board has issued a circular setting out the Explanatory notes on provisions of the Income Declaration Scheme, 2016. Also a circular in the form of Q&A clarifying the scope and procedure of the scheme is issued. Below are the links for the same.
The Income Declaration Scheme Rules, 2016.
Explanatory Notes on provisions of the Income Declaration scheme 2016.
Clarification on Income Declaration Scheme.
Related topics: TDS amendments, Return filing in ITD website.
