Income Declaration Scheme
The Income Declaration Scheme 2018 has been framed under Chapter IX of the Finance Act 2018. As per Circular No. 16/2018, It comprises sections 181 to 199 of Finance Act 2018. In this article an attempt has been made to consolidate the entire law published till date on the Scheme. The Income Declaration Scheme, 2018 incorporated in Chapter IX of the Finance Act 2018 provides an opportunity for those who are not adequately informed prior years' losses to come forward and declare income (s) undisclosed.
Under this scheme, these revenues as reported by eligible persons would be taxed at 30% plus one "Krishi Kalyan Cess' 25% in the fees payable and a penalty at the rate of 25% in income taxes payable, thus totaling 45% of the income declared under the scheme.
Similar to the one-time tax compliance scheme under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘BMA’), IDS is a step taken by the Indian Government to allow a short window of opportunity to declare undisclosed income and assets.
The IDS has been introduced to provide the taxpayers with an opportunity to come clean and declare any undisclosed income (on which tax was not paid) and assets acquired from such income by paying prescribed tax, surcharge and penalty
The system offers the possibility to people who have not paid full taxes in the past to come forward and declare undisclosed income and pay taxes, payment is worth a total of forty-five percent of these undisclosed income declared.
However, if a person makes the declaration of income not subject to tax under the Tax Act on income, for example, a person who made the statement regarding the receipt of capital or exempt income, this statement should not be the responsibility of the income scheme, but under Article 191 of the tax plan and surcharge paid u / s 184 or penalty paid u / s 183 is non-refundable.
However, if a single tax or surcharge, where section 191 is to operate is not clear plan is paid.
Tax , Surcharge and Penalty under the Scheme
Tax
|
30% of Undisclosed Income [184(1)]
|
Surcharge= Krishi Kalyan Cess
|
25% of Tax =7.5% of Undisclosed Income [184(2)]
|
Penalty
|
25% of Tax =7.5% of Undisclosed Income [185]
|
Total
|
45% of Undisclosed Income
|
Important Dates:
Action required
|
Form
|
Timelines
|
Date from which declarations can be made
|
1
|
NA
|
Last date for making declaration
|
1
|
NA
|
Last date for paying tax, surcharge and penalty
|
NA
|
NA
|
Issue of acknowledgement to the declarant
|
2
|
NA
|
Furnishing of proof of payment to the jurisdictional Principal Commissioner / Commissioner (‘Authority’)
|
3
|
No timeline specified
|
Authority to issue certificate for accepted declaration
|
4
|
NA
|
Transferring an asset by a benamidar to the declarant or his legal representative
|
NA
|
NA
|
Advertisement
