Domestic black money window will ensure peace of mind: IT dept
The Income Tax department on Thursday brought out its first public advertisement to popularise and create awareness about the four-month window for declaring domestic black money that opens on June 1.
New Delhi: The Income Tax department on Thursday brought out its first public advertisement to popularise and create awareness about the four-month window for declaring domestic black money that opens on June 1.
The advertisement, sporting a picture of an iron vault hiding cash and immovable assets like car and house, appeared in prominent national dailies here stating the Income Declaration Scheme (IDS) will be open till September 30 and said those who availed this "one time opportunity" to declare their black funds will "enjoy peace of mind forever" and this "contribution" of theirs will "enhance their respect."
The advertisement read: 'aap kaarein yogdaan, badhayein apna samman'.
The public information piece also talks about the salient features of the four-month IDS made known earlier, like declarants will enjoy immunity from scrutiny or inquiry under the Wealth Tax Act (now scrapped), IT Act and Benami Transactions Act (subject to certain conditions).
The advertisement said the fair market value of the asset declared, will be as on June 1, 2016 deemed to be the undisclosed income.
"Under the Scheme, income as declared by the eligible persons, would be taxed at the rate of 30 percent plus a 'Krishi Kalyan Cess' of 25 percent on the taxes payable and a penalty at the rate of 25 percent of the taxes payable, thereby totalling to 45 percent of the income declared under the scheme," the Finance Ministry had earlier said.
These taxes have to be paid by November 30.
A senior IT official said a series of such public messages and local seminars will be held over the next few months to not only create awareness about the IDS but also to dispel any myths on its execution and implementation.
The scheme was announced by the government with an aim to fish out black money from the domestic economy.
Earlier, the government had come out with similar scheme for Indians holding undisclosed income abroad.
The scheme will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to Financial Year 2015-16 or earlier, the Ministry said.
The declarations under the IDS can either be made online on the official e-filing website of the IT department to before the various regional Principal Commissioners of IT in the country.