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TMI BlogVoluntary Disclosure of Income Scheme, 1997--Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ich has been under-stated in the return of wealth, whether wealth-tax will be payable and, if so, for which assessment years ? Answer : Some ambiguity has arisen as a result of the answer given to Question No. 19. It is hereby clarified that if a declaration is made during the period of operation of the Scheme relating to any assessment year, no wealth-tax will be payable by virtue of section 73(1) for any assessment year up to assessment year 1997-98. Wealth-tax will, however, be payable in accordance with the provisions of the Wealth-tax Act on the asset, if any, relatable to the income disclosed in terms of clause (a), (b) or (c) of section 73(1) for assessment year 1998-99 and subsequent years. Question No. 27 : Whether su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e be adjusted by the tax deducted at source earli er in respect of that income ? Answer : Yes. There are, however, exceptions under section 64(1A) of the Income-tax Act, and in the following cases, the minor's income shall not be included in the income of the parents :- (i) Where the minor child suffers from any disability of the nature specified in section 80U; (ii) Where income accrues or arises to the minor child on account of any - (a) manual work done by him/her; or (b) activity involving application of his/her specialised knowledge and expe rience. Question No. 32 : Whether immunity from levy of penalty in respect of a disclosure is restricted only to penalty under section 271(1)(c) of the Income-tax Act ? Ans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 36 : Survey operations were carried out u/s 133A of the Income-tax Act in case of Mr. 'D' on 30-9-1993. Can the make a declaration under VDIS in respect of assessment year 1993-94 and earlier years ? Answer : If the survey operations were carried on 30-9-1993, i.e., "previous year 1993-94," no disclosure can be made for "assessment year 1994-95". The declaration of income can be made for assessment year 1993-94 and earlier assessment year. The declaration can also be made for assessment year 1995-96 and subsequent assessment years. Question No. 37 : Whether multiple declarations can be made by a person at different time during which the VDIS is in operation and in respect of different assessment years ? Answer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the undisclosed income is partly from exports and partly from domestic sales, then the declarant should disclose the net income after allowing for deduction under section 80HHC. The amount that should be disclosed is only the taxable income. the declarant would be will advised to keep with him the calcula tion sheet. Question No. 42 : Whether the assessment in whose case quantum additions have been made u/s 143 (3) of the Income-tax Act, and the matter is in appeal, can make a declaration under the VDIS ? Answer : A declaration can be made but the declarant shall not be entitled to get any relief in appeal, reference or other proceeding in relation to such assessment. Therefore, in case penalty proceedings have been initiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruing on the disclosed income with regard to the cor rectness of the status ? Answer : No. Question No. 46 : A person declares that his entire undis closed income is invested in the construction of a building. Whether the Department would sub-sequently get the building valued ? Also, whether it would take action against the person if excess amount of investment is discovered ? Answer : It is expected that the true investment will be disclosed under the scheme. No valuation would, therefore, be got done by the Department. However, if on the basis of other infor mation, it is found that a higher amount was invested that the amount disclosed, then suitable proceedings under the Act can be taken in respect of the difference b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the calculation sheet. Question No. 50 : If a search is carried out after a declaration is made, what would be the consequences for the declarant ? Answer : In respect of amount covered by VDIS no tax would be payable. The declarant will get the benefit of no levy of penalty and no prosecution would be initiated in respect of the disclosed income. In respect of any income other than the dis closed income discovered during the search, or computed on the basis of evidence gathered, the assessee will be liable to tax, interest, penalty and prosecution. Question No. 51 : If the beneficial owner of a property makes a declaration of income in respect of a property held benami, whether he would get immunity under the Benami T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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