TaxTMI 
TaxTMI 
Voluntary Disclosure of Income Scheme, 1997--Clarification regarding
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....n disclosed for wealth-tax purposes or which has been under-stated in the return of wealth, whether wealth-tax will be payable and, if so, for which assessment years ? Answer : Some ambiguity has arisen as a result of the answer given to Question No. 19. It is hereby clarified that if a declaration is made during the period of operation of the Scheme relating to any assessment year, no wealth-tax will be payable by virtue of section 73(1) for any assessment year up to assessment year 1997-98. Wealth-tax will, however, be payable in accordance with the provisions of the Wealth-tax Act on the asset, if any, relatable to the income disclosed in terms of clause (a), (b) or (c) of section 73(1) for assessment year 1998-99 and....
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....d by the tax deducted at source earli­er in respect of that income ? Answer : No. Question No. 31 : Will the tax payable in respect of the disclosed income be adjusted by the tax deducted at source earli­er in respect of that income ? Answer : Yes. There are, however, exceptions under section 64(1A) of the Income-tax Act, and in the following cases, the minor's income shall not be included in the income of the parents :- (i) Where the minor child suffers from any disability of the nature specified in section 80U; (ii) Where income accrues or arises to the minor child on account of any - (a) manual work done by him/her; or (b) activity....
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.... in respect of the previous year in which a search is initiated or in respect of any earlier previous year. In the case cited above, search was initi­ated in assessment year 1992-93. Therefore, disclosure can be made (except for the income/assets discovered seized during the search referred to), in respect of assessment year 1993-94 and subsequent years. Question No. 36 : Survey operations were carried out u/s 133A of the Income-tax Act in case of Mr. 'D' on 30-9-1993. Can the make a declaration under VDIS in respect of assessment year 1993-94 and earlier years ? Answer : If the survey operations were carried on 30-9-1993, i.e., "previous year 1993-94," no disclosure can be made for "assessment ye....
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.... of income can be made for assessment years 1992-93 to 1994-95. Question No. 41 : Mr. 'Y' is engaged in export business. Export income was not disclosed. Whether the amount undisclosed can be declared now ? Whether the gross amount, i.e., the export proceeds has to be disclosed or the net amount after computing the deduction under section 80HHC ? Answer : If undisclosed income is solely from export busi­ness, there may be no need for a disclosure under the VDIS, 1997. However, if the undisclosed income is partly from exports and partly from domestic sales, then the declarant should disclose the net income after allowing for deduction under section 80HHC. The amount that should be disclosed is only the t....
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....ent up to the year when the grandson becomes a major. Question No. 44 : Is the certificate to be issued in all cases by the Commissioner where a declaration is filed or only where an application is made ? Answer : The certificate will be issued only after the total tax is paid in respect of a declaration. the certificate will be issued only on the receipt of an application. The appli­cation can be made on plain paper. Question No. 45 : Whether a person who makes a declaration as karta of an HUF, can be questioned subsequently in respect of income accruing on the disclosed income with regard to the cor­rectness of the status ? Answer : No. Question No. 46 ....
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.... the declaration be held to be valid if total tax payment is made by 31-3-1998? Answer : Yes. Question No. 49 : There will be cases where the income disclosed in the declaration from is less than the gross income. The cash to be introduced in the books of account will cash to be introduced in the books of account will consequently be a higher amount. This may create complications at a later stage when the Assessing Officer will only accept the amount specified in the declaration from. What should be done in such cases ? Answer : Immunity is only is respect of income disclosed. The Commissioner of Income-tax will not go into the computation of income disclosed. The declarant would be wel....