Giving an opportunity to all those who have undeclared income, the Finance Ministry have announced to start the Income Declaration Scheme, 2016 which will commence from 1st June from this year. With this scheme, individuals who have undisclosed money can now correctly declare such undisclosed income(s).
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 will remain in force for a period of four months and the declarations can be filed online.
However, foreign assets or income to which the Black Money Act 2015 applies, are not eligible for declaration under this scheme, according to a release issued by the IT Department.
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, the release added.