1.
The information contained in the declaration
shall not be shared with any other law enforcement agency. The information will
also not be shared within the Income Tax Department for any investigation in
respect of a valid declaration.
2.
The Scheme provides immunity under the
Income-tax Act, 1961, the Wealth-tax Act, 1957 and the Benami Transactions
(Prohibition) Act, 1988. Immunity from Benami Transactions (Prohibition) Act is
subject to the condition that the property will be transferred to the declarant
(being the person who provided the consideration for the property) latest by
30th September, 2017. However, as mentioned in response to Question No.1 above,
the information contained in the declaration made under the Scheme will not be
shared with any other tax or law enforcement agency.
3.
The value of the property for the purposes of
declaration in such cases shall be computed as per Rule 3 of the IDS Rules even
if such value is lower that the value adopted or assessed/assessable by stamp
valuation authority.
4.
The value mentioned in the registered deed shall
be relevant for determining the cost of acquisition and the same can be taken
as the fair market value only where it is higher than the price that the
property shall ordinarily fetch if sold in the open market as on 1st June,
2016.
5.
; credit for tax deducted shall be allowed only
in those cases where the related income is declared under the Scheme and the
credit for the tax has not already been claimed in the return of income file
for any assessment year.
6.
There is no need to indicate the source of
income at all.
7.
No Investigation against the seller of the
property representing undisclosed income of the buyer for which declration is
made under the scheme.
8.
Declaration of past undisclosed income in the
current year [i.e. AY 2017-18] amounts to false verification of return of
income which shall attract prosecution under the Income-tax Act.
9.
If anyone attempts to disclose past undisclosed income
in the current year[i.e. AY 2017-18], he will have to explain the source of
income and substantiate the manner of earning the said income. In case of
disclosure under the Scheme, there is no need to explain the source of income.
10.
Declaration of past undisclosed income in the
current year cannot explain assets acquired in the past or provide any immunity
in respect of the same.
11.
The Income-tax Department is in receipt of large
volume of information from various sources such as registrars of property,
banks, financial institutions, stock exchanges, tax deductors etc. The
Department has launched a comprehensive data-mining and compliance management
programme in the form of ‘Project Insight’ which will generate a large volume
of reliable information about financial transactions undertaken by taxpayers
and the relevant year in which the transaction was undertaken
12.
In a case the declarant earned undisclosed
income of Rs. 90 lakh in previous year 2010-11. Out of the same, he acquired an
immovable property in the previous year 2011-12 for Rs.50 lakh, made personal
expenditure to the extent of Rs.20 lakh and balance Rs.20 lakh is left with him
as cash in hand on 01.06.2016. The fair market value of the immovable property
as on 01.06.2016 is Rs.80 lakh. What is the amount to be declared under the
Scheme?
The declarant in this case has to declare the
following: (i) Rs. 80 lakh being fair market value of the immovable property as
on 01.06.2016 (ii) Rs. 20 lakh being the cash in hand as on 01.06.2016 (iii)
Rs. 20 lakh being the balance of undisclosed income [Rs. 90 lakh – (Rs.50 lakh
+ Rs. 20 lakh)] which is not represented in the form of investment in any
asset. Thus the total undisclosed income to be declared in this case will be
Rs. 1.20 crore.
13.
In case the person declares the undisclosed
house property at its fair market value on 01.06.2016, whether any action will
be taken for bringing the annual value of the undisclosed property to tax as
income from house property by deeming it to be let property as provided under
section 23(4)(b) of the Income-tax Act for the earlier previous years?
No. However, where the house property was
let-out during the relevant period, the actual rent received or receivable will
be required to be declared under the Scheme in addition to the fair market
value of the house property as on 01.06.2016.
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