9911796707
TMI BlogThe Voluntary Disclosure of Income and Wealth Ordinance, 1975-Clarifications regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... the Ordinance, clarifications have been sought and these are given below:- (i) Question.-- Disclosures may be made by minors and ladies or by Hindu undivided families with no nucleus funds of their own. Will any enquiries be made as to the real person whose income has been declared by one or more persons falling in these three categories? Answer.-- While minors, ladies and Hindu undivided families are competent to make declarations on their own account, they cannot make declarations to help another person. This is evident from item (c) of the Verifications to the Declaration Forms A, B and C wherein the declarant has to solemnly declare that the income/wealth in respect of which he is not chargeable to tax is not included in his de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of the Ordinance requires some payment of tax before making a declaration, if the declarant for any good and sufficient reason, is unable to make full payment. (v) Question.-- How many declarations can be made by one person? Answer.-- As regards the voluntarily disclosed income, a person is entitled to make only one declaration under section 3(1) of the Ordinance. Any subsequent declaration filed by him under section 3(1) will be void. The aforesaid restriction does not apply to the declarations that may be made under sections 14(1) and 15(1) of the Ordinance. (vi) Question.-- Whether a declaration under section 3(1) of the Ordinance can be filed by a person who has not submitted a return, but on whom a notice under section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eized assets represent the undisclosed income of 1975-76 or an earlier assessment year, he can make a declaration under section 14(1) of the Ordinance subject to the other conditions of the Ordinance being satisfied. (xi) Question.-- In a search and seizure case, the assessee is willing to offer undisclosed income represented by seized cash, etc., under section 14(1) of the Ordinance. As regards payment of tax thereon, he wants the department to adjust the amount held in deposit by order under section 132(5) against the tax payable as per the declaration. Is this possible? Answer.-- In respect of seizures made prior to October 1, 1975, under section 132(5), seized assets can be retained to satisfy the existing liability under the sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 15(1) of the Ordinance and states that he had inherited/purchased the same several years back at price which was only a fraction of the present value of the assets. Will it be permissible to enquire into the source of funds actually utilised in the acquisition thereof? Answer.-- A declaration under section 15(1) of the Ordinance in respect of net wealth or value of assets not disclosed or understated does not debar the income-tax authorities from enquiring into the source of funds actually utilised in the acquisition thereof and the year in which the assets were acquired and to assess the unexplained investment, if any, to income-tax in the appropriate assessment year(s). (xiv) Question.-- Whether the declaration in Form C sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
