TMI BlogClarifications on the Income Declaration Scheme, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... red. The Income Declaration Scheme Rules, 2016 (hereinafter referred to as the Rules ) have been notified. In this regard, Circular No. 17 of 2016 dated 20th May, 2016 issued by the Board provided clarifications to 14 queries. Subsequently, further queries have been received from the public about various provisions of the Scheme. The Board has considered the same and the following clarifications are issued.- Question No.1: If only part payment of the tax, surcharge and penalty payable on undisclosed income declared under the Scheme is made before 30.11.2016, then whether the entire declaration fails as per section 187(3) of the Finance Act, 2016 or pro-rata declaration on which tax, surcharge and penalty has been paid remains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, 2016 , such income of A.Y. 2001-02 shall be assessed in the year in which the notice under section 148 or 153A or 153C , as the case may be, of the Income-tax Act is issued by the Assessing Officer. Further, if such undisclosed income is detected in the form of investment in any asset then value of such asset shall be as if the asset has been acquired or made in the year in which the notice under section 148 / 153A / 153C is issued and the value shall be determined in accordance with rule 3 of the Rules . Question No.5: Whether a person on whom a search has been conducted in April, 2016 but notice under section 153A is not served upto 31.05.2016, is eligible to declare undisclosed income under the Scheme? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission. Question No.9: Land is acquired by the assessee in year 2001 from assessed income and is regularly disclosed in return of income. Subsequently in the year 2014, a building is constructed on the said land and the construction cost is not disclosed by the assessee. What shall be the fair market value of such building for the purposes of the Scheme? Answer: Fair market value of land and building in such a case shall be computed in accordance with Rule 3(2) by allowing proportionate deduction in respect of asset acquired from assessed income. Question No.10: Whether cases where summons under section 131(1A) have been issued by the Department or letter under the Non-filer Monitoring System (NMS) or under section 133( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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