There is an air of confusion due to some misleading clarifications and statements in the media regarding net Tax Liability of 31% under the Income Declaration Scheme, 2016 instead of 45%.
A rumour has been raised that the Tax, Interest and Penalty can be paid on the amount declared under the scheme from unknown sources. For e.g. if a person declared Rs 1 crores under the scheme, the tax, interest and penalty of Rs 45 lakhs can be paid from unknown sources for which no enquiry will be made.
A clarification has been issued by the Government and it has been clarified that for ‘Immunity under the Scheme’, the entire amount including Tax, Interest and Penalty must be disclosed by assessee. For e.g. for geting Rs 1 crore as clean money under the scheme, a declaration of Rs 1.82 crores should be disclosed and a sum of Rs. 0.82 cores should be paid as Tax, Interest and Penalty.
This is in line with the spirit of the scheme, wherein there is requirement of Correct Disclosure of Undisclosed Income.
In order to facilitate the declarant and avoid distress sale of assets by declarants, the government has also extended the dates for payment of Tax, Interest and penalty under the scheme as below:-
25% Dues by 30-11-2016
25% Dues by 31-03-2016; and
50% Dues by 30-09-2017
It is the last opportunity to come clean by an Indian Resident and we belive that with professional advice all persons having undislosed assets must use this opportunity to avoid legal and tax problems in future.
For any further clarification in this matter, please send a mail on [email protected] or call on M – 9001231231.