Para 5 - Amount of reward, its basis and stages of determination - Income Tax Informants Rewards Scheme, 2018

5. Amount of reward, its basis and stages of determination: The reward under this Scheme may be granted in two stages, namely, interim final. 5.1. Interim reward: 5.1.1. Interim reward for information of undisclosed foreign income/assets liable under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015: Interim reward up to 3% of the additional taxes levied (which is directly attributable to the information furnished by him), under the Black Money (Undisclosed Foreign Income and Assets), Act, 2015, may be granted on statutory determination of undisclosed foreign asset/income following completion of assessment proceedings under sub-section (3) or (4) of section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, subject to a ceiling of the Indian ₹ 50,00,000 (Rupees Fifty Lakh or five million) to an informant for the information given at a time in a single Annexure A form when the authority competent is satisfied that assessment made is likely to be sustained in appeal and taxes levied are likely to be recovered. 5.1.2. Interim reward for information of undisclosed income/assets liable under the Income Tax Act, 1961: (i) Interim reward up to 1% of the additional taxes realizable, which is directly attributable to the information furnished by the informant, on the undisclosed income detected by the Investigation Directorate under the Income-tax Act, 1961, may be granted subject to a ceiling of Indian ₹ 10,00,000 (Rupees Ten Lakh or one million) to an informant for the information given at a time in a single Annexure A form when the competent authority is satisfied that the additional taxes on the income detected are likely to be recovered. (ii) Where specific information of unaccounted/undisclosed cash is given by informant which leads to seizure of the cash exceeding ₹ 1,00,00,000 (Rupees one crore or Ten million) as undisclosed income/asset during search seizure action u/s 132 of the Income-tax Act, 1961, the ceiling of interim reward shall be Indian ₹ 15,00,000 (Rupees Fifteen Lakh or One and half million) even though the rate will be same at 1% as above. 5.2. Timeline for payment of interim reward: All reward granting authorities shall endeavor to pay interim reward to an informant eligible for such reward within following timeline: (i) Within four months of completion of the relevant assessments under sub section (3) or (4) of Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in cases where information of undisclosed foreign income/assets is given; (ii) Within four months of forwarding of final investigation report by the Investigation Directorate concerned to the Assessing Officer in cases where information of undisclosed income/assets liable under the Income-tax Act, 1961, is given. 5.3. Final reward: 5.3.1. Final reward for information of undisclosed foreign income/assets liable under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015: (i) The maximum amount of reward payable to an informant who has furnished information about undisclosed foreign income or assets of a person liable to tax in India under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, shall not exceed 10% of the additional taxes levied and realized under the said Act, which are directly attributable to the information furnished by him, subject to a ceiling of Indian ₹ 5,00,00,000 (Rupees Five Crore or Fifty million ), after the assessment has become final on the issues relevant for determination of reward by appeals, revision, rectification etc. (ii) If the informant has claimed reward for giving information of evasion of tax payable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, as well as benami properties based upon substantially the same facts and has been found eligible for grant of reward under the Benami Transactions Informants Reward Scheme, 2018 as also the Income Tax Informants Reward Scheme, 2018, the total amount of reward under both the schemes taken together shall not exceed ₹ 5,00,00,000 (Rupees Five crore or Fifty million). 5.3.2. Final reward for information of undisclosed income/assets liable under the Income Tax Act, 1961: (i) The maximum amount of reward payable to an informant shall not exceed 5% of the additional taxes levied and realized, which are directly attributable to the information furnished by him, under the Income-tax Act, 1961, subject to a ceiling of Indian ₹ 50,00,000 (Rupees Fifty Lakh or Five million) after the assessment has become final on the issues relevant for determination of reward by appeals, revision etc. (ii) If the informant has claimed reward for giving information of evasion of tax payable under Income Tax Act, 1961, as well as benami properties based upon substantially the same facts and has been found eligible for grant of reward under the Benami Transactions Informants Reward Scheme, 2018 as also the Income Tax Informants Reward Scheme, 2018, the total amount of reward under both the schemes taken together shall not exceed ₹ 1,00,00,000 (Rupees one crore or Ten million). 5.3.3. Stages of determination of final reward: The final reward for information of undisclosed foreign income/assets liable under the Black Money (Undisclosed Foreign Income and Assets), 2015 or for information of undisclosed income/assets liable under the Income Tax Act, 1961 shall be processed on realization of additional taxes directly attributable to the information given by the informant. Such processing may be initiated at different stages which may include the following: (a) Where relevant assessments/appeals have attained finality, i.e., against which no appeal/ further appeal/ revision/ rectification etc. is pending or a period of 12 (twelve) months has elapsed from the statutory time limit for filing such appeal/revision/rectification etc., or (b) Where relevant case(s) is/are settled by the ITSC by way of order u/s 245D(4) of the Income-tax Act, 1961 and such order has attained finality, i.e., against which no litigation/ rectification etc. is pending and a period of 12 (twelve) months has elapsed from the date of such order of ITSC; or (c) Where the relevant case(s) are under litigation on certain issues but the informant requests for grant of final reward based upon the undisputed additional taxes realized directly attributable to the information furnished by him, till the date of his request and gives an unconditional written undertaking signed in the presence of the JDIT (Inv.) concerned that he will have no further claim of reward in the relevant group of cases. 5.3.4. The amount of interim reward, if any, already paid shall be reduced while granting final reward. 5.3.5. Timeline for final reward: All reward granting authorities shall endeavor to pay final reward to an informant eligible for such reward, within six months of fulfillment of the conditions mentioned in this scheme. 5.4. Modalities of payment of reward to an Informant who is a foreign person: The reward granted to a foreign person, who is an informant, may be paid by regular banking channel as per guidelines issued by Reserve Bank of India (otherwise than cash), to his bank account in India or abroad, as requested in writing by the Informant, in Indian Rupees or its equivalent US Dollar at the exchange rate prevailing at the time of actual payment of reward. Commission or charges for payment in US Dollar shall be deducted from the gross reward amount granted.