Four-month window to declare black money opens on June 1: Finance Ministry

The Income Declaration Scheme, 2016, which provides an opportunity to all persons who have not declared income correctly in earlier years to come clean will open on June One.

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 unveiled this budget shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 for filing of declarations. Payment of tax, surcharge and penalty can be by 30th November, 2016. Declarations can be filed online or with the jurisdictional principal 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. In case, declaration is in the form of investment in assets, the Fair Market Value of such asset as on 1stJune 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 this scheme. Assets specified in the declaration shall be exempt from Wealth tax.



No Scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken in respect of such declarations. These declarations will also enjoy immunity from prosecution under the Income-tax Act and Wealth Tax Act as also 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 declaration void, a finance ministry statement said on Saturday.