TaxTMI 
TaxTMI 
Clarifications of Voluntary Disclosure of Income Scheme, 1997
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.... income represented by flat/land and machinery, shares, etc., acquired prior to 1-4-1987 is required to be disclosed at the market value as on 1-4-1987? (Please see sections 64 & 73) Answer : No. The value should be as on the date of acquisi­tion of the asset. Question No. 3 : Whether the undisclosed income can be de­clared by the minor after the assessment year 1992-93 or it is to be declared by his parents in whose hands it is taxable ? Answer : Minor can declare his undisclosed income of 1992-93 or earlier assessment years. From Assessment year 1993-94, his income is includible in the parents' income and he is not obliged to file a return himself. Only parents can declare the minor's income for assessment year 1993-94 or later. Question No. 4 : Can undisclosed income be declared by the minor for the assessment year prior to 1992-93 in his own hands ? (Please see sections 63 & 64) Answer  ....
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....clarant's option. Question No. 10 : Will there be a time-limit under the Scheme for the CIT to issue the certificate ? Answer : Apparently, there is no time limit for issue of a certificate. If the declared income relates to a pending assess­ment, then, the CIT will be obliged to issue the certificate before the date on which the said assessment gets barred by limitation of time. [Commissioners have now been advised to issue the certificates within two days if taxes are paid in full.] Question No. 11 : Will the declaration under the Scheme be final in itself or it will be final only on its being accepted by the Commissioner of Income-tax ? Answer : In respect of a valid declaration, it will be final only when the certificate is issued by the CIT. Question No.....
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....y the lady or the minor then the Assessing Officer should accept the credit entries in the books of the firm. If the amount credited is more than the amount declared the Assessing Officer will be free to enquire into such excess. Question No. 15 : Under section 68 of the Scheme the amount of the voluntary disclosed income is not to be included in the total income of any assessment year if (a) such amount is credited in the books of account or any other record and the credit so made is intimated to the Assessing Officer and (b) income-tax is paid on such amount. In such a case, three questions arise (i) what is the meaning of "any other record" particularly when declarant maintains no record ? (ii) who will be the Assessing Officer - whether the regular AO or the designated officer in the office of the Commis­sioner ? and (iii) what is meaning of "credited in the books of account" ? Answer : ....
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....of the property, it exceeds the limit laid down in Chapter XX-C, whether any proceedings will be initiated by Appropriate Authori­ty ? Answer : (a) No. (b) Cost of the acquisition as declared before the income-tax authorities and increased by the amount disclosed under the scheme in respect of the asset. (c) Once the Appropriate Authority issues NOC u/s 269UL(1), his jurisdiction that transaction ceases. The Appropriate Author­ity cannot initiate any further proceedings. Question No. 18 : As per section 65(3), only one declara­tion is permitted under the Scheme. Multiple declarations should be allowed to take care of certain situations, e.g., where piece­meal recoveries of undisclosed amounts are made from debtors ? Answer : Only one declaration is permitted. Where piece-meal recovery of undisclosed amounts are made from debtors, the declarant may perhaps wait till the final recovery before the closure of the Sche....
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....year should be permitted. If in the assessment proceedings, say any expenditure has been disal­lowed, whether this can be offered under VDIS after withdrawal of appeal? Answer : This cannot be done. [As regards assessments set aside in appeal, please refer to answer to Question No. 52. The Scheme does not provide for a declaration to be filed after withdrawing an appeal.] Question No. 23 : The scope of the Scheme should be ex­panded so as to include cases where — (a) action u/ss 132, 133A has been taken. (b) appeal is withdrawn, as this will reduce litigation. Answer : This is not possible. In respect of survey u/s 133A, the declarants are debarred for that previous year only. ....