Facts about Income Tax Declaration Scheme 2016 – Closing 30th September 2016

Disclose your income under all new Income tax Declaration Scheme 2016 – Last date for submitting declarations being 30th September 2016

The Income Declaration Scheme 2016 has been designed with an aim to remove the black hole of “black money” from our society and improving on the nation’s economy. The Income Declaration Scheme -2016 was introduced w.e.f. 1st June 2016 the last date of submitting declarations being 30th September 2016. This scheme came into being with an aim to provide a platform to un-veil the income all those who had not declared their income legally be it in form of an asset or cash. The scheme is ongoing under certain set of clauses which are mentioned as under:

➤ Declaration of the undeclared income needs to be done followed by payment of taxes, surcharge as well as penalty on the amount of the undisclosed income.

➤ The undisclosed asset or income that is to be declared should be chargeable to tax for the assessment year earlier than the assessment year 2017- 18.

➤ The declaration can be made on the Form I under Sector 183 of the Finance Act 2016.

➤ The key to declare the undisclosed income under this scheme is to pay a minimum of 30% of income tax on the undeclared income in addition to the surcharge of 25% thereon.

➤ In addition to the income tax returns the person will have to bear a penalty upto 25% of the tax making the total amount to 45% of the entire undisclosed income.

➤ The last date of declaring the undisclosed income is 30th September 2016, whereas to make payment of income tax, penalty and surcharge the deadline is 30th November 2016.

How is Income Declaration Scheme 2016 different from precursor income declaration schemes?

➤ The amount payable towards the scheme includes taxes, penalties, and surcharges which amounts to 45% of the undisclosed income which is way to higher than any of the previous income declaration schemes which would not exceed 15%. Also 45% amounts to almost half of the income declared and such high amount payable at the time of declaration is not so motivating for people to come forward and contribute towards the scheme.

➤ The evaders who have already been sent notices from the income tax department are not included under the scheme, therefore a lot of people will not be able to contribute towards the scheme in-spite of the willingness to do so.

➤ Letzbank has partnered with ClearTax to ensure that you get to file your return in time by self or through expert assistance. All you will be required to do is to visit us at Letzbank and choose to make a declaration of your income with the expertise of ClearTax. Depending on your employment type you can choose from filing your ITR free or pay to avail an expert assistance. The income declaration scheme has so far been able to contribute Rs.4500 Crores towards the nation’s economy which is expected to obtain Rs.10,000 Crores. Research shows that if all the black money was to come out then we would be seven times richer than we are today; therefore, let us contribute to the country’s economy by declaring our undisclosed income.

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