The Ministry of Finance on 11th May, 2016 vide a press release
stated that the Income Declaration Scheme, 2016 would come into
force from 1st June, 2016 and will remain in force for 4 months
till 30th September, 2016, for filing of declarations and payment
towards taxes, surcharge and penalty to be made latest by 30th
What is Income Declaration Scheme, 2016? The Income
Declaration Scheme, 2016 has been incorporated as Chapter IX of the
Finance Act 2016 which provides an opportunity to all persons who
have not declared income correctly in earlier years to come forward
and declare such undisclosed income(s).
Following particulars were stated vide this press release:
All the declarations are to be filed online or with Principal
Commissioners of Income Tax across the country;
The income declared under this scheme would be taxed at the
rate of 30% along with a 25% "Krishi Kalyan Cess" on the
taxes payable and a penalty of 25% on the taxes payable thus,
totaling it to 45%;
The undisclosed income in form of investment in assets or
otherwise, pertaining to financial year 2015-16 or earlier would be
covered under the scheme;
The declaration for the purpose of undisclosed income, done in
form of investment in assets, would be deemed to be the Fair Market
Value of such assets as on 1st June, 2016. Foreign assets or income
to which the Black Money Act, 2015 applies would not be covered
under this scheme;
Assets specified in the declaration shall be exempt from Wealth
No scrutiny and enquiry shall be undertaken on declarations
done under the scheme with respect to the Income-Tax Act or the
Wealth Tax Act;
Apart from the immunity from prosecution is granted under the
Income Tax Act and Wealth Tax Act, immunity from Benami
Transactions (Prohibitions) Act, 1988 shall also be provided if the
assets are transferred to the actual owner within the period
specified in the Rules made under such Act;
The declaration would be rendered void if the facts of such
declaration are misrepresented or suppressed;
Also, non-payment of taxes, surcharge and penalty shall render
the declaration void.
The Section 196 (Chapter IX) of the Finance Act, 2016 lists
down the circumstances in which the scheme shall not apply or a
person is held disqualified;
Undisclosed income would be liable for taxation in the previous
year in which it was detected by the Income Tax Department if, not
declared under this scheme. Nondeclaration would also attract other
"1. A pharmaceutical composition comprising a solid dosage
ritonavir or a pharmaceutically acceptable salt and ester
darunavir or a pharmaceutically acceptable salt and ester
Optionally, at least one pharmaceutically acceptable
excipient, which composition is a tablet formulation comprising
said ritonavir in a first layer of the formulation and said
darunavir in a second layer of the formulation."
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Cummins Inc. is a foreign company, rendering services in respect of desktop/laptop software license and internet mail facilities to its Indian associated enterprises, i.e. CIL and CSSL which were paying IT charges provided by the taxpayer.
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