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Clarifications about the Income Disclosure Scheme
Posted on: 28/Sep/2016 12:59:36 PM
Under the Income Disclosure Scheme (IDS) the four-month window for disclosure of unaccounted wealth ends this month. People with undisclosed assets can escape prosecution by making use of IDS.
In order to clarify the doubts of the people, Central Board of Direct Taxes (CBDT) has been issuing various amendments and clarifications. Recently it had issued 5 circulars clarifying the doubts of the people. The details of the circulars are available on the income tax department website www.incometaxindia.gov.in
The Finance Ministry has come out with the fifth set of frequently asked questions providing clarifications for the Income Declaration Scheme.
The period of holding of assets declared under the scheme will be taken on the basis of actual date of acquisition of the asset and not June 1, 2016, as was clarified earlier.
Under the scheme, whenever an immovable property is evidenced by a registered deed, the declarants will have the option to mention the fair market value of such property by applying the cost inflation index to the stamp duty value of the property.
The FAQs provide clarification that fictitious liabilities in an audited balance-sheet can be disclosed under the scheme without linking it to the investment in any specific asset. Further, income declared under the scheme for an earlier assessment year can be taken into account to explain related transactions.
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