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TMI BlogVoluntary Disclosure of Income Scheme, 1997--Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... e return of wealth, whether wealth-tax will be payable and, if so, for which assessment years ? Answer : Some ambiguity has arisen as a result of the answer given to Question No. 19. It is hereby clarified that if a declaration is made during the period of operation of the Scheme relating to any assessment year, no wealth-tax will be payable by virtue of section 73(1) for any assessment year up to assessment year 1997-98. Wealth-tax will, however, be payable in accordance with the provisions of the Wealth-tax Act on the asset, if any, relatable to the income disclosed in terms of clause (a), (b) or (c) of section 73(1) for assessment year 1998-99 and subsequent years. Question No. 27 : Whether survey under section 133A(5) of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of that income ? Answer : Yes. There are, however, exceptions under section 64(1A) of the Income-tax Act, and in the following cases, the minor's income shall not be included in the income of the parents :- (i) Where the minor child suffers from any disability of the nature specified in section 80U; (ii) Where income accrues or arises to the minor child on account of any - (a) manual work done by him/her; or (b) activity involving application of his/her specialised knowledge and experience. Question No. 32 : Whether immunity from levy of penalty in respect of a disclosure is restricted only to penalty under section 271(1)(c) of the Income-tax Act ? Answer : No. Penalties under other sections would also not be levied for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make a declaration under VDIS in respect of assessment year 1993-94 and earlier years ? Answer : If the survey operations were carried on 30-9-1993, i.e., "previous year 1993-94," no disclosure can be made for "assessment year 1994-95". The declaration of income can be made for assessment year 1993-94 and earlier assessment year. The declaration can also be made for assessment year 1995-96 and subsequent assessment years. Question No. 37 : Whether multiple declarations can be made by a person at different time during which the VDIS is in operation and in respect of different assessment years ? Answer : No. Question No. 38 : If a person defaults in filing return for the assessment year 1997-98, can he file a declaration for the same year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount that should be disclosed is only the taxable income. the declarant would be will advised to keep with him the calculation sheet. Question No. 42 : Whether the assessment in whose case quantum additions have been made u/s 143 (3) of the Income-tax Act, and the matter is in appeal, can make a declaration under the VDIS ? Answer : A declaration can be made but the declarant shall not be entitled to get any relief in appeal, reference or other proceeding in relation to such assessment. Therefore, in case penalty proceedings have been initiated by the Assessing Officer and the quantum addition is sustained, penalty would be levied. Question No. 43 : Mr. 'A' gifted Rs. 2 lakhs to his minor grandson in 1988. The grandson was 10 yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding. Whether the Department would sub-sequently get the building valued ? Also, whether it would take action against the person if excess amount of investment is discovered ? Answer : It is expected that the true investment will be disclosed under the scheme. No valuation would, therefore, be got done by the Department. However, if on the basis of other information, it is found that a higher amount was invested that the amount disclosed, then suitable proceedings under the Act can be taken in respect of the difference between the true value of investment and the amount disclosed. Question No. 47 : 'A' purchases shares for Rs. 25 lakhs in previous year 1992-93 relevant to assessment year 1993-94. The shares were transferred in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty and no prosecution would be initiated in respect of the disclosed income. In respect of any income other than the disclosed income discovered during the search, or computed on the basis of evidence gathered, the assessee will be liable to tax, interest, penalty and prosecution. Question No. 51 : If the beneficial owner of a property makes a declaration of income in respect of a property held benami, whether he would get immunity under the Benami Transactions (Prohibition) Act, 1988 ? Answer : Under the VDIS there is no immunity under the Benami Transactions (Prohibition) Act, 1988. However, in such a case income-tax Department will accept the declaration and treat the asset as belonging to the declarant. Question No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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