The Income Declaration Scheme 2016 - No Further Clarification and No Extension

Central Board of Direct Taxes vide its PRESS RELEASE dated New Delhi, 2nd September, 2016 on the Subject : The Income Declaration Scheme 2016 has advised that:-

• All the major queries and concerns of stakeholders have already been addressed by issue of circulars (FAQs) and also to provide stability and certainty to the Scheme, it is envisaged that no further clarifications on the Scheme shall be issued.
• They have reiterated that the Scheme closes on 30.09.2016. 
• The extension of the scheme is out of question.

Income declaration Scheme has become very attractive after the amendments and announcements from Government. Take Full advantage of the Opportunity given by Government. For Planning and efficient implementation in a beneficial manner, contact CA Aastha Jain @ 99 999 03556.

They have also briefed what all has been the basic premise of the scheme alongwith the clarity issued till date on the concerns of various stakeholder :-

1. The Income Declaration Scheme, 2016 (the Scheme) provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. 
2. The Scheme has come into effect from 1.6.2016 and is open for declarations up to 30.9.2016. 
3. The Income Declaration Scheme, 2016 Rules (the Rules) have been notified on 19.5.2016. 
4. The amount payable under the Scheme can be paid in instalments viz. 25% of the total amount payable by 30.11.2016; another 25% by 31.3.2017 and balance 50% by 30.9.2017.

In order to address concerns of the stakeholders and to clarify the queries relating to the provisions of the Scheme, the Rules have been amended from time to time and six set of circulars (FAQs) have been issued. The following major issues addressed through Rules and FAQs are as under:

• The information in respect of a valid declaration is confidential and shall neither be shared with any law enforcement agency nor shall be enquired into by the Income-tax Department.
• The assets declared under the Scheme are to be valued at cost of acquisition or at fair market price as on 1.6.2016 as determined by the registered valuer, whichever is higher. However, an option for valuation of registered immovable property on the basis of stamp duty value of acquisition adjusted with the Cost Inflation Index has also been provided.
• Credit for unclaimed TDS made on declared income shall be allowed.
• Neither any capital gains tax nor any TDS shall be levied on transfer of declared benami property from benamidar to the declarant without consideration.
• The amount of fictitious liabilities recorded in audited balance sheet and not linked to acquisition of an asset can be disclosed under the Scheme as such.
• The period of holding of declared registered immovable assets shall be taken on the basis of the actual date of registration.
• The valuation report obtained by the declarant from a registered valuer shall not be questioned by the department. However, valuer’s accountability will remain.
• No adverse action shall be taken by FIU or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the Scheme.
• No enquiry/investigation shall be made in respect of the undisclosed income and assets declared under the Scheme even if the evidence of same is found subsequently during course of search or survey proceedings (circular No.32 dated 01.09.2016).

Further, vide Circular No. 31 dated 30.8.2016 an option has been provided to the declarants to file the declaration under the Scheme electronically under digital signature with the Commissioner of Income-tax, Centralised Processing Centre, Bengaluru [CIT(CPC)]. In case the declarant exercises the said option the declaration shall not be shared with the jurisdictional Principal Commissioner/Commissioner under the Income tax Act.

Important Reference Links

• PM's speech in Mann ki Baat Regarding IDS ​​​​​​​​​​​​​​​​​​​​​​​​​​​
• Chapter-IX of the Finance Act, 2016 - Income Declaration Scheme, 2016​​​​​​​​​
• Income Declaration Scheme Rules, 2016​​​​​​​​​
• Income Declaration Scheme (Third Amendment) Rules, 2016 - Notification No. 74 !New ​​​​​​​​​
• Income Declaration Scheme (Second Amendment) Rules, 2016 - Notification No. 70 ​​​​​​​​​
• Income Declaration Scheme (Amendment) Rules, 2016 - Notification No. 60​​​​​​​​​
• Income Declaration Scheme, 2016 - Notification No. 59​​​​​​​​​
• Income Declaration Scheme, 2016 - Notification No. 32​​​​​​​​​
• Expalanatory circular
• Income Declaration Scheme, 2016 - Circular No. 32 of 2016 !New ​​​​​​​​​​​​​​​​​​​
• Income Declaration Scheme, 2016 - Circular No. 31 of 2016 !New ​​​​​​​​​​​​​​​​​​​
• Clarifications on the Income Declaration Scheme, 2016 - FAQ - Circular No. 29 of 2016 ​​​​​​​​​​​​​​​​​​​
• Clarifications on the Income Declaration Scheme, 2016 - FAQ - Circular No. 27 of 2016​​​​​​​​​​​​​​​​​​​
• Clarifications on the Income Declaration Scheme, 2016 - FAQ - Circular No. 25 of 2016​​​​​​​​​​​​​​​​​​​
• Clarifications on the Income Declaration Scheme, 2016 - FAQ - Circular No. 24 of 2016​​​​​​​​​​​​​​​​​​​
• Clarifications on the Income Declaration Scheme, 2016 - FAQ - Circular No. 17 of 2016
• Form for Income Disclosure - Form 1​​​​​​​​​​
• Form for Income Disclosure - Form 1 - User Manual​​​​​​​​​​​​​​​​​​​​​​​​​
• Challan for I​ncome Declaration Scheme - Challan No. 286​​​​​​​​​​​​​​​​​​​​​​​​​

​Press Release​

1. ​The Income Declaration Scheme 2016; 02-Sep-2016​​​​​​​​​​​​​​​​​​
2. ​The Income Declaration Scheme 2016- Rule amendment and issuance of FAQ- Clarification regarding; 18-Aug-2016​​​​​​​​​​​​​​​​​​
3. The Income Declaration Scheme 2016- Rule amendment and issuance of FAQ​; 18-Aug-2016​​​​​​​​​​​​​​​​​
4. The Income Declaration Scheme 2016 - Relaxation of time schedule for making payments under the Scheme; 14-Jul-2016​​​​​​​​​​​​​​​​​
5. The Income Declaration Scheme 2016 - Issue of further FAQs; 14-Jul-2016 ​​​​​​​​​​​​​​​​​
6. Issue of further clarifications (FAQs) under Income Declaration Scheme, 2016; 30-Jun-2016​​​​​​​​​​​​​​​​​
7. ​Prime Minister speaks on Income Declaration Scheme in Mann ki Baat; 26-Jun-2016​​​​​​​​​​​​​​​​​
8. The Income Declaration Scheme 2016- FAQs; 20-May-2016​​​​​​​​​​​​​​​​​
9. The Income Declaration Scheme 2016 to open from 1st June 2016; 14-May-2016 ​​​​​​​​​​​​​​​​​
10. The Income Declaration Scheme 2016 & The Direct Tax Dispute Resolution Scheme 2016; 12-May-2016 ​​​​​​​​​​​​​​​​​

A glance on the myths and facts about GST

A section of people thinks that GST implies deduction in the amount of tax levied on goods they purchase. But what it is exactly? Is it the same? The answer is a big NO!!!  So, the question which is supposed to arise in everyone’s mind is what exactly GST stands for. This is basically “Fewer taxes, at unified rates”.

GST- No Tax Cuts

GST
is never introduced to get the taxes disappeared in any manner; however, it would make the taxes simple by unification of multiple taxes. Consequently, it would be less tiresome to pay the taxes and of course to collect as well. So, perish the thought that it is expecting to trim the taxes on goods and services.

How GST impacts

The impact of GST can be well explained and clarified on the goods and services in your basket. It would replace multiple indirect taxes with few of the standard rates. This way, it would crunch the timeframe required to ship the goods in and across the country. As this is well known fact that the central as well as state government charges the indirect taxes on different levels e.g. service tax, excise duty, and VAT. And GST will be the blend all of the indirect taxes into a single tax. 

A reform for Indian Economy

This is a game changing reform which would reduce the cascading tax on goods and services. What does this word GOODS stand for?  It is the kind of properties that can be moved sans dismantling. When the goods are being shipped to another state then rather than collecting the inter-state tax, the central Govt. would collect the integrated GST and after retaining its own share the balance of state share will be imparted to the state government. But in the case of intra-state tax Central GST along with state GST would be levied on the goods. Here, SERVICES imply doing something; so, whenever there is transfer of some goods that is known as supply of goods and transferring the ‘Right to use’ means supplying the services.

Exemption from GST

Yes!!!! There are few goods which are completely exempted from this tax. Now you would definitely want to know what all that includes.  Here is the list to end up your curiosity:

ü  Roti: This list includes pulses, milk, rice, cereals, flour, poultry and many more.

ü  Kapda: Textile

ü  Makaan: Rent of accommodation or construction of home

ü  Shiksha: All recognized degrees and diplomas.

ü  Swasthya: It includes getting the diseases diagnosed and cured.

All items of basic needs of a human are GST exempted!!!! 

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