April 29, 2024 07:09 (IST)
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Union Budget 2016: Proposal for compliance window to declare undisclosed income
New Delhi, Feb 29 (IBNS) Union Finance Minister Arun Jaitley on Monday presenting the Union Budget 2016 proposed a scheme to declare undisclosed income by paying 45% tax in a given compliance window.
The minister proposed a limited period compliance window for domestic taxpayers to declare undisclosed income or income represented in the form of any asset and clear up their past tax transgressions.
This will include paying tax at 30% and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income.
Regarding income declared in these declarations, there will be no scrutiny or inquiry under the Income Tax Act or the Wealth Tax Act and those declaring their undisclosed income will have immunity from prosecution.
Immunity from Benami Transaction (Prohibition) Act, 1988 has also been proposed subject to certain conditions.
The surcharge levied at 7.5% of undisclosed income will be called ‘Krishi Kalyan surcharge’, which will be used for agriculture and rural economy.
Government of India plans to open the window under this Income Disclosure Scheme from June 1 to September 30, 2016 with an option to pay the amount due within two months of declaration.
Jaitley also reiterated the government's commitment to remove black money from the economy. He also suggested that the government will focus on bringing people with black money too books after the period of compliance window is over.
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