Government Plan Programme Policies for UPSC Exam
:: The Income Declaration Scheme 2016 ::
The Income Declaration Scheme, 2016 incorporated as Chapter
IX of the Finance Act 2016 provides an opportunity to all persons who have not
declared income correctly in earlier years to come forward and declare such
Under the Scheme, such income as declared by the eligible
persons, would be taxed at the rate of 30% plus a ‘Krishi Kalyan Cess’ of 25% on
the taxes payable and a penalty at the rate of 25% of the taxes payable, thereby
totalling to 45% of the income declared under the scheme.
The scheme shall remain in force for a period of 4 months
from 1st June, 2016 to 30th September, 2016 for filing of declarations and
payments towards taxes, surcharge & penalty must be made latest by 30th
November, 2016. Declarations can be filed online or with the jurisdictional Pr.
Commissioners of Income-tax across the country.
The scheme shall apply to undisclosed income whether in
the form of investment in assets or otherwise, pertaining to Financial Year
2015-16 or earlier.
Where the declaration is in the form of investment in assets,
the Fair Market Value of such asset as on 1st June 2016 shall be deemed to be
the undisclosed income under the Scheme. However, foreign assets or income to
which the Black Money Act 2015 applies are not eligible for declaration under
Assets specified in the declaration shall be exempt from
No Scrutiny and enquiry under the Income-tax Act or the
Wealth tax Act shall be undertaken in respect of such declarations.
Immunity from prosecution under the Income-tax Act and Wealth
Tax Act is also provided along with immunity from the Benami Transactions
(Prohibition) Act, 1988 subject to transfer of asset to actual owner within the
period specified in the Rules.
Non-payment of total taxes, surcharge & penalty in time or
declaration by misrepresentation or suppression of facts shall render the
The circumstances in which the Scheme shall not apply or
where a person is held to be ineligible are specified in section 196 (Chapter
IX) of the Finance Act, 2016.
Non declaration of undisclosed income under the Scheme, will
render such undisclosed income liable to tax in the previous year in which it is
detected by the Income tax Department. Other penal consequences will also follow