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 ..... e Income Declaration Scheme Rules, 2016 (hereinafter referred to as the IDS Rules ) have been notified. In this regard, Circular No. 17 of 2016 dated 20th May, 2016 and Circular No. 24 of 2016 dated 27th June, 2016 issued by the Board provided clarifications to 14 and 11 queries respectively. 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: Will the information contained in the declaration be shared with other law enforcement agencies? Answer: No; the information contained in the declaration shall not be shared with any other law enforcement agency. The information will also no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any, in respect of income declared shall be allowed? Answer: Yes; credit for tax deducted shall be allowed only in those cases where the related income is declared under the Scheme and the credit for the tax has not already been claimed in the return of income file for any assessment year. Question No.5: Where a valid declaration is made after making valuation as per the provisions of the Scheme read with IDS Rules and tax, surcharge penalty as specified in the Scheme have been paid, whether the department will make any enquiry in respect of sources of income, payment of tax, surcharge and penalty? Answer: No. Question No.6: What is the purpose of obtaining the information about the nature of undisclosed income in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property shall ordinarily fetch if sold in the open market as on 1st June, 2016. Question No.8: In case a declaration relating to investment in undisclosed asset is made under the Scheme, whether any investigation will be initiated against the seller in respect of such declaration? Answer: No. Question No.9: What are the advantages of the Scheme as against declaring the past undisclosed income as current income in the return of income to be filed for Assessment Year 2017-18? How will the Department identify the year in which the undisclosed income was earned. Answer: In this regard, the following points may be noted: Declaration of past undisclosed income in the current year amounts to false verification of return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in this case has to declare the following: (i) ₹ 80 lakh being fair market value of the immovable property as on 01.06.2016 (ii) ₹ 20 lakh being the cash in hand as on 01.06.2016 (iii) ₹ 20 lakh being the balance of undisclosed income [Rs. 90 lakh (Rs.50 lakh + ₹ 20 lakh)] which is not represented in the form of investment in any asset. Thus the total undisclosed income to be declared in this case will be ₹ 1.20 crore. Question No.11: A person invested his undisclosed income in a house property in the previous year 2010-11 which has not been let out. The person also owned another house property from disclosed sources, which has been claimed as self-occupied property for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
