The Income Tax Department has strongly advised that each and every person having black money generated from legal activities to avail the last opportunity given by the government and come clean by paying taxes under the new proposed scheme. And they should not even think of declaring any black money generated from illegal activities, corruption, terrorism, extortion, etc belonging to others as besides confiscation and fine of 25%, the false declarant (benamidar) may land up in jail for rigorous imprisonment of up to 7 years.
The following are the salient features of the new scheme announced:
1. Applicable for undisclosed income in the form of Cash or deposits (including FD/RD,etc) held in in bank accounts or in Post Office (Section 199C) or any other specified entity.
2. Pay Income Tax @ 30% of Cash + Surcharge @ 33% of Tax + Penalty @ 10% of Cash i.e. aggregating to 49.90% of undisclosed income (cash) (Section 199D & 199E)
3. The declarant shall 'deposit' minimum 25% of Cash in a Deposit Scheme to be notified by the CG in consultation with RBI. (Section 199F)
4. The 'deposit' shall be interest-free and shall have a lock-in period of 4 years from the date of deposit [Section 199F(2)]
5. Income Tax + Surcharge + Penalty + Deposit i.e. 74.90% has to be paid to the treasury before making the declaration and the proof of payment is to be attached with the declaration.(Section 199H)
6. The amount of undisclosed income (cash) shall not be included in the total income of any assessment year of the declarant. (Section 199I)
7. The undisclosed income may have been earned at any time before 01-04-2017. (The provision inadvertently says on or before 01-04-2017, which should be rectified)
8. The declaration made under the scheme shall not be admissible in evidence against the declarant for the purpose of any proceedings under any act except those mentioned in Section 199O (like the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of Money-Laundering Act, 2002, etc.)
9. The benefit of scheme won't be ava
IT Dept.'s warning on New Income Disclosure Scheme
By IndianMandarins - 2016-11-30 11:13:07
The Income Tax Department has strongly advised that each and every person having black money generated from legal activities to avail the last opportunity given by the government and come clean by paying taxes under the new proposed scheme. And they should not even think of declaring any black money generated from illegal activities, corruption, terrorism, extortion, etc belonging to others as besides confiscation and fine of 25%, the false declarant (benamidar) may land up in jail for rigorous imprisonment of up to 7 years.
The following are the salient features of the new scheme announced:
1. Applicable for undisclosed income in the form of Cash or deposits (including FD/RD,etc) held in in bank accounts or in Post Office (Section 199C) or any other specified entity.
2. Pay Income Tax @ 30% of Cash + Surcharge @ 33% of Tax + Penalty @ 10% of Cash i.e. aggregating to 49.90% of undisclosed income (cash) (Section 199D & 199E)
3. The declarant shall 'deposit' minimum 25% of Cash in a Deposit Scheme to be notified by the CG in consultation with RBI. (Section 199F)
4. The 'deposit' shall be interest-free and shall have a lock-in period of 4 years from the date of deposit [Section 199F(2)]
5. Income Tax + Surcharge + Penalty + Deposit i.e. 74.90% has to be paid to the treasury before making the declaration and the proof of payment is to be attached with the declaration.(Section 199H)
6. The amount of undisclosed income (cash) shall not be included in the total income of any assessment year of the declarant. (Section 199I)
7. The undisclosed income may have been earned at any time before 01-04-2017. (The provision inadvertently says on or before 01-04-2017, which should be rectified)
8. The declaration made under the scheme shall not be admissible in evidence against the declarant for the purpose of any proceedings under any act except those mentioned in Section 199O (like the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of Money-Laundering Act, 2002, etc.)
9. The benefit of scheme won't be ava
