Due date for payment of tax under Income Disclosure scheme extended:
CBDT vide notification no. 103 of 2019 Dt. 13.12.2019 has extended the due date, for people who have made declaration under sub-section 1 of section 183 but who have not made payment of tax and surcharge leviable under section 184 and penalty under section 185, till 31.01.2020 along with interest on such amount @1% per month or part of month from the due date till the date of payment.
Earlier the due date was 30.09.2017.
You can download the notification from here:
Let’s understand what’s IDS scheme in brief:
The scheme was basically introduced for people who had some undisclosed income and they could pay tax, surcharge and penalty on such income and become safe from various proceedings.
- Any person on whom search survey has been conducted and assessment has been done but some income has not been included in such assessment then in that case one could make declaration.
- If the income was from source such as corruption then in that case declaration couldn’t be made.
- Such declaration made by the assessee was confidential.
- If any asset is shown as undisclosed income then one was required to file it’s valuation report containing it’s FMV as on 01.06.2016.
- The person making declaration was required to pay 30% tax plus 25% surcharge on said tax along with penalty of 25% on such tax. Hence assessee would be liable to pay 45% of total undisclosed income.
Benefits:
- Asset declared exempt from wealth tax.
- No enquiry/ scrutiny by income tax department on such income.
- Immunity from prosecution and Benami Transaction (Prohibition) Act, 1988.
The declaration was required to be filed online.
In short this scheme was introduced for people to convert their black money into white by paying 45% tax on it. Many builders and jewelers had taken benefit of such scheme.
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