The Income
Tax Department today warned of prosecution if undeclared income of past years
is passed off as current income instead of disclosing it under the one-time
black money compliance window.
Coming up with the third set of 'Frequently Asked Questions' on the Income Declaration Scheme (IDS) 2016, the Central Board of Direct Taxes clarified that declaration of undisclosed income and assets as current income for Assessment Year 2017-18 would attract prosecution for false verification.
Such declaration, it said, cannot explain acquisition of undisclosed assets in the past years.
The IDS-2016 provides a four-month window for domestic black money holders to disclose their assets and come clean by paying 45 per cent tax and penalty.
The compliance window closes on September 30 and tax is to be paid by November 30, 2016.
The FAQ provides clarifications on issues such as confidentiality of information disclosed in the declaration, allowability of TDS credit against declared income, enquiry in respect source of income and payment of tax and initiation of enquiry against third parties on the basis of information furnished in the declaration.
An issue regarding the advantage of declaring undisclosed income and assets under the Scheme vis- -vis declaration of the same as current income for Assessment Year 2017-18 was raised by stakeholders, the CBDT said.
Coming up with the third set of 'Frequently Asked Questions' on the Income Declaration Scheme (IDS) 2016, the Central Board of Direct Taxes clarified that declaration of undisclosed income and assets as current income for Assessment Year 2017-18 would attract prosecution for false verification.
Such declaration, it said, cannot explain acquisition of undisclosed assets in the past years.
The IDS-2016 provides a four-month window for domestic black money holders to disclose their assets and come clean by paying 45 per cent tax and penalty.
The compliance window closes on September 30 and tax is to be paid by November 30, 2016.
The FAQ provides clarifications on issues such as confidentiality of information disclosed in the declaration, allowability of TDS credit against declared income, enquiry in respect source of income and payment of tax and initiation of enquiry against third parties on the basis of information furnished in the declaration.
An issue regarding the advantage of declaring undisclosed income and assets under the Scheme vis- -vis declaration of the same as current income for Assessment Year 2017-18 was raised by stakeholders, the CBDT said.
Representative
Image
Source: PTI
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