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TMI BlogClarifications of Voluntary Disclosure of Income Scheme, 1997X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions 64 & 73) Answer : No. The value should be as on the date of acquisition of the asset. Question No. 3 : Whether the undisclosed income can be declared by the minor after the assessment year 1992-93 or it is to be declared by his parents in whose hands it is taxable ? Answer : Minor can declare his undisclosed income of 1992-93 or earlier assessment years. From Assessment year 1993-94, his income is includible in the parents' income and he is not obliged to file a return himself. Only parents can declare the minor's income for assessment year 1993-94 or later. Question No. 4 : Can undisclosed income be declared by the minor for the assessment year prior to 1992-93 in his own hands ? (Please see sections 63 & 64) Answer : Yes, for reasons given in Question No. 3. Question No. 5 : If the firm had concealed income, can the partners file declaration in respect of such concealed income ? Answer : The declaration will be by the firm verified by the managing partner. If there is no managing partner, then by one of the partners. The partners need not make declaration regarding their respective share of income. Question No. 6 : Where search and seizure action has take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also any other Central Act. The Central Government should recommend to the State Governments that no proceeding be initiated under the State Acts like Sales Tax, Excise, i.e., in respect of entries credited in the books as a result of declarations made under the VDIS, 1997. Answer : The question of recommending to the State Governments that no proceeding should be initiated under the Sales Tax Act does not arise because the disclosed income is just a lump sum not falling under any head of income like business and profession, capital gains or other sources. Hence, there is no presumption that disclosed income relates to suppressed turnover or suppressed manufacture. Question No. 13 : Immunity should also be granted to Directors of a company, partners of the firm and members of the AOP which makes a declaration under the scheme. Answer : As far as firms and AOPs are concerned, it is enough if firm and AOPs declare. There is no need for partners and members to declare separately in respect of the income declared by the firm or AOP. In respect of disclosure by the company, no director of the company shall be prosecuted. Question No. 14 : In the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of the jewellery or other assets ? Whether the value of jewellery as on 1-4-1987 will be adopted only for purposes of VDIS or will it also be adopted for Wealth Tax in subsequent years ? Answer : In respect of immovable property, the Department will not insist upon any valuation certificate along with the declaration. It is the responsibility of the declarant to declare the correct value. In respect of the jewellery if it has been acquired prior to 1-4-1987, the value will be taken as on 1-4-1987 as certified by valuer. Further, the value adopted as on 1-4-1987 is for the limited purpose of the scheme. Question No. 17 : In the case of sale of immovable property,— (a) if the purchaser declares the "black" portion under the scheme, what will be the position of the seller ? Will the department proceed against him (seller) ? (b) if the property is sold subsequently, what will be the cost of acquisition ? (c) if, as a result of the declaration of the actual value of the property, it exceeds the limit laid down in Chapter XX-C, whether any proceedings will be initiated by Appropriate Authority ? Answer : (a) No. (b) Cost of the acquisition as declared be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessment year ? Answer : Issue of section 143(2) notice is not a bar. Question No. 22 : If an assessment is set aside in appeal, declaration for that assessment year should be permitted. If in the assessment proceedings, say any expenditure has been disallowed, whether this can be offered under VDIS after withdrawal of appeal? Answer : This cannot be done. [As regards assessments set aside in appeal, please refer to answer to Question No. 52. The Scheme does not provide for a declaration to be filed after withdrawing an appeal.] Question No. 23 : The scope of the Scheme should be expanded so as to include cases where — (a) action u/ss 132, 133A has been taken. (b) appeal is withdrawn, as this will reduce litigation. Answer : This is not possible. In respect of survey u/s 133A, the declarants are debarred for that previous year only. [In respect of survey u/s 133A, the declarants are debarred for that previous year only. In respect of searches, please see reply to Question No. 6. NO disclosure can be made for any year by withdrawing an appeal - refer answer to Question No. 22 also.] Question No. 24 : Say Rs. 100 is held abroad and declared under VDIS. R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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