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TMI BlogClarifications of Voluntary Disclosure of Income Scheme, 1997X X X X Extracts X X X X X X X X Extracts X X X X ..... o be disclosed at the market value as on 1-4-1987 ? (Please see sections 64 73) Answer : No. The value should be as on the date of acquisi tion of the asset. Question No. 3 : Whether the undisclosed income can be de clared by the minor after the assessment year 1992-93 or it is to be declared by his parents in whose hands it is taxable ? Answer : Minor can declare his undisclosed income of 1992-93 or earlier assessment years. From Assessment year 1993-94, his income is includible in the parents' income and he is not obliged to file a return himself. Only parents can declare the minor's income for assessment year 1993-94 or later. Question No. 4 : Can undisclosed income be declared by the minor for the assessment year prior to 1992-93 in his own hands ? (Please see sections 63 64) Answer : Yes, for reasons given in Question No. 3. Question No. 5 : If the firm had concealed income, can the partners file declaration in respect of such concealed income ? Answer : The declaration will be by the firm verified by the managing partner. If there is no managing partner, then by one of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Answer : In respect of a valid declaration, it will be final only when the certificate is issued by the CIT. Question No. 12 : The immunity granted under the scheme should be along the lines of section 245H of the Income-tax Act, i.e., should be extended to immunity from penalty and prosecution under IPC and also any other Central Act. The Central Government should recommend to the State Governments that no proceeding be initiated under the State Acts like Sales Tax, Excise, i.e., in respect of entries credited in the books as a result of declara tions made under the VDIS, 1997. Answer : The question of recommending to the State Govern ments that no proceeding should be initiated under the Sales Tax Act does not arise because the disclosed income is just a lump sum not falling under any head of income like business and pro fession, capital gains or other sources. Hence, there is no presumption that disclosed income relates to suppressed turnover or suppressed manufacture. Question No. 13 : Immunity should also be granted to Directors of a company, partners of the firm and members of the AOP which makes a declaration unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom case to case depending upon the nature of the disclo sure whether it is under-statement of stock or under-statement of turnover or under-statement of sale consideration of a property, etc. Question No. 16 : Will the value of assets declared be accepted by the Department as it is or will it be necessary to file a valuer's certificate along with the declaration ? Can the matter be referred by the Department to Valuation Cell ? Is any evidence required to be filed regarding the year or purchase of the jewellery or other assets ? Whether the value of jewellery as on 1-4-1987 will be adopted only for purposes of VDIS or will it also be adopted for Wealth Tax in subsequent years ? Answer : In respect of immovable property, the Department will not insist upon any valuation certificate along with the declaration. It is the responsibility of the declarant to declare the correct value. In respect of the jewellery if it has been acquired prior to 1-4-1987, the value will be taken as on 1-4-1987 as certified by valuer. Further, the value adopted as on 1-4-1987 is for the limited purpose of the scheme. Question No. 17 : In the case of sale of imm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of assets declared under VDIS, whether the benefit of indexation will be available ? If yes, whether the cost of acquisition will be actual cost or the deemed cost as on 1-4-1987 ? Answer : Yes. In case of jewellery, the cost of acquisition will be the actual cost and not deemed cost as 1-4-1987. Question No. 21 : Section 64(2)(i) of the Scheme disenti tles a person from making a declaration in respect of an assess ment year, if for that assessment year a notice u/s 142 or 148 has been served upon him. What will be the position if a notice u/s 143(2) has been served ? Will it debar the assessee from making a declaration for that assessment year ? Answer : Issue of section 143(2) notice is not a bar. Question No. 22 : If an assessment is set aside in appeal, declaration for that assessment year should be permitted. If in the assessment proceedings, say any expenditure has been disal lowed, whether this can be offered under VDIS after withdrawal of appeal? Answer : This cannot be done. [As regards assessments set aside in appeal, please refer to answer to Question No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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