Clause 179 - Definitions

Income declaration scheme enables voluntary disclosure with prescribed tax, surcharge and penalty consequences for undisclosed income.

The Income Declaration Scheme, 2016 permits voluntary declaration of undisclosed income for a limited period and prescribes fiscal consequences: tax at thirty per cent on declared undisclosed income, a Krishi Kalyan Cess surcharge at twenty five per cent of that tax, and a penalty at twenty five per cent of tax. Declared income is excluded from total income for completed assessments, declarations are non refundable, certain declared assets are exempt from wealth tax, and the Central Board of Direct Taxes and Central Government are empowered to make rules and remove difficulties for implementation.