Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Clarifications on the Income Declaration Scheme 2016

Income Tax - 17/2016 - Dated:- 20-5-2016 - Circular No.17 of 2016 F.No.142/8/2016-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division) Dated 20th of May, 2016 The Income Declaration Scheme, 2016 (hereinafter referred to as the Scheme ) incorporated as Chapter IX of the Finance Act, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare the undisclosed income and pay tax, surcharge and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

form of investment in asset is declared under the Scheme and tax, surcharge and penalty is paid on the fair market value of the asset as on 01.06.2016, then will the declarant be liable for capital gains on sale of such asset in the future? If yes, then how will the capital gains in such case be computed? Answer: Yes, the declarant will be liable for capital gains under the Income-tax Act on sale of such asset in future. As per the current provisions of the Income-tax Act, the capital gains is c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for an assessment year will he be ineligible from making a declaration under the Scheme? Answer: The person will only be ineligible from declaration for those assessment years for which a notice under section 142(1)/143(2)/148/153A/153C is issued and the proceeding is pending before the Assessing Officer. He is free to declare undisclosed income for other years for which no notice under above referred sections has been issued. Question No.3: As per the Scheme, declaration cannot be made where an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 148, 153A or 153C of the Income-tax Act has been issued and served on the declarant on or before 31st day of May, 2016. The declarant is required to file a declaration regarding receipt of any such notice in Form-1. Question No.4: In a case where the undisclosed income is represented in the form of investment in asset and such asset is partly from income that has been assessed to tax earlier, then what shall be the method of computation of undisclosed income represented by such undisclosed ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al cost of the asset. This is illustrated by an example as under: Investment in acquisition of asset in previous year 2013-14 is of ₹ 500 out of which ₹ 200 relates to income assessed to tax in A.Y. 2012-13 and ₹ 300 is from undisclosed income pertaining to previous year 2013-14. The fair market value of the asset as on 01.06.2016 is ₹ 1500. The undisclosed income represented by this asset under the scheme shall be: 1500 minus (1500 X 200 /500) = ₹ 900 Question No.5 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax Act. Question No.6: Can a person against whom a search/survey operation has been initiated file declaration under the Scheme? Answer: (a) The person is not eligible to make a declaration under the Scheme if a search has been initiated and the time for issuance of notice under section 153A has not expired, even if such notice for the relevant assessment year has not been issued. In this case, however, the person is eligible to file a declaration in respect of an undisclosed income in relation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ut certain income was neither disclosed nor assessed, then whether such unassessed income can be declared under the Scheme? Answer: Yes, such undisclosed income can be declared under the Scheme. Question No.8: What are the consequences if no declaration under the Scheme is made in respect of undisclosed income prior to the commencement of the Scheme? Answer: As per section 197(c) of the Finance Act, 2016, where any income has accrued or arisen or received or any asset has been acquired out of su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Scheme and the same was found ineligible due to the reasons listed in section 196 of the Finance Act, 2016, then will the person be liable for consequences under section 197(c) of the Finance Act, 2016? Answer: In respect of such undisclosed income which has been duly declared in good faith but not found eligible, then such income shall not be hit by section 197(c) of the Finance Act, 2016. However, such undisclosed income may be assessed under the normal provisions of the Income-tax Act, 196 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Question No.11: Can a person declare under the Scheme his undisclosed income which has been acquired from money earned through corruption? Answer: No. As per section 196(b) of the Finance Act, 2016, the Scheme shall not apply, inter-alia, in relation to prosecution of any offence punishable under the Prevention of Corruption Act, 1988. Therefore, declaration of such undisclosed income cannot be made under the Scheme. However, if such a declaration is made and in an event it is found that the inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version