Clarifications on the Income Declaration Scheme, 2016

Tax Declaration Scheme enables regularisation of undisclosed income with prescribed levy and limited statutory immunity.

The Income Declaration Scheme, 2016 permits taxpayers to declare past undisclosed income and regularise it by paying the prescribed tax, surcharge and penalty; TDS credit is allowed if not earlier claimed. Declarations will not be shared with other agencies and will not trigger departmental investigation where valid. Immunity is available only under the Income-tax Act, Wealth-tax Act and, subject to transfer by a specified date, the Benami Transactions (Prohibition) Act. Fair market value for immovable property is the higher of acquisition cost and open-market price as on 1 June 2016; declared rents must be reported where property was let.