FAQs on the Income Declaration Scheme, 2016

Chapters / List

1. Where an undisclosed income in the form of investment in asset is declared under the Scheme and tax, surcharge and penalty is paid on the fair market value of the asset as on 01.06.2016, then will the declarant be liable for capital gains on sale of such Assets?

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2. Where a notice under section 142(1)/143(2)/148/153A/153C of the Income-tax Act has been issued to a person for an assessment year will he be ineligible from making a declaration under the Scheme?

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3. As per the Scheme, declaration cannot be made where an undisclosed asset has been acquired during any previous year relevant to an assessment year for which a notice under section 142, 143(2), 148, 153A or 153C of the Income-tax Act has been issued.

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4. In a case where the undisclosed income is represented in the form of investment in asset and such asset is partly from income that has been assessed to tax earlier, then what shall be the method of computation of undisclosed income represented by such undisclosed income?

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5. Can a declaration be made of undisclosed income which has been assessed to tax and the case is pending before an Appellate Authority?

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6. Can a person against whom a search/ survey operation has been initiated file declaration under the Scheme?

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7. Where a search/ survey operation was conducted and the assessment has been completed but certain income was neither disclosed nor assessed, then whether such unassessed income can be declared under the Scheme?

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8. What are the consequences if no declaration under the Scheme is made in respect of undisclosed income prior to the commencement of the Scheme?

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9. If a declaration of undisclosed income is made under the Scheme and the same was found ineligible due to the reasons listed in section 196 of the Finance Act, 2016, then will the person be liable for consequences under section 197(c) of the Finance Act, 2?

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10. If a person declares only a part of his undisclosed income under the Scheme, then will he get immunity under the Scheme in respect of the part income declared?

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11. Can a person declare under the Scheme his undisclosed income which has been acquired from money earned through corruption?

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12. Whether at the time of declaration under the Scheme, will the Principal Commissioner/Commissioner do any enquiry in respect of the declaration made?

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13. Will the declarations made under the Scheme be kept confidential?

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14. If a person declares income under this scheme then what is the due date for payment of tax calculated on declared income?

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15. Is it necessary to file a valuation report of an undisclosed income represented in the form of investment in asset along with the declaration under the Scheme?

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16. How a person can claim refund of excess amount deposited towards payment of tax on declared income?

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