Good response to Income declaration scheme (IDS) for declaration of undisclosed income. However the Achievement is not up to mark. We all are aware the quantum of cash deposits into bank after demonetization announcement.
And Govt. has been introduced the another Scheme to provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity (which includes banks, post office etc.) to declare such income
Let us run through the common doubts under the Scheme.
Features under this Scheme?
- Declaration can be made by any person in respect of undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity.
What are the Time Limits for the Scheme?
- The Scheme has commenced on 17.12.2016 and shall remain open for declarations/deposit upto 31.03.2017.
How much tax percentage?
- Tax, Surcharge and penalty totaling up to 49.9% of the undisclosed income to be paid.
- Example: 49.9 lakhs tax to be paid on disclose of 100 Lakhs income
What are the additional conditions are required to comply?
- Mandatory deposit of 25% of the undisclosed income to me made in this Scheme.
- No interest will be paid on these deposits.
- Lock in period is 4 Years
What are the advantages for declaration under this Scheme?
- Your declarations are maintained confidentially
- The income declared under the scheme shall not be taxable under the income tax Act 1961
- Immunity in respect of declaration made under the scheme also available under all Acts other than those specified in the Section 199-O of the Scheme.
If i don’t declare what will happen?
- Non declaration of such undisclosed income will be liable to tax 77.25% along with penalty and prosecution.
Can you explain the procedure for declaration under this scheme?
25% deposit With Bank
- Subscribe the bond ledger account with any authorized Bank.
- The deposit amount shall not be less than twenty-five per cent of the undisclosed income to be declared.
- The entire deposit to be made in a single payment, before filing declaration using Form -II.
- Bank Will provide the Certificate of Holding Comprises of Certificate ID,Amount, Deposit date, Maturity Date and Nominee
- Discharge the Liability using Challan No./ITNS 287 (Payment under Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY)
- Submit Form-1 through online or offline modes
- After receiving the Form 1, the IT department will issue Form 2 (acknowledging the receipt of form-1 & taxes) to the declarant within 30 days of receiving Form1
Step forward to declare if required, otherwise consequences are non tolerable.
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