With just four weeks remaining for the blackmoney disclosure scheme to close, government has given declarants an option to declare their undisclosed income through electronic filing rather than physical presentation of documents.
The tax department, in a circular this week, provided declarants under the Income Disclosure Scheme (IDS) the option to file declarations electronically under digital signature with the Commissioner of Income Tax, CPC, Bengaluru.
"In case the declarant exercises the said option, the declaration shall not be shared with the jurisdictional Principal Commissioner/Commissioner under the Income-Tax Act," the CBDT statement said.
It also ruled out any extension of the four month disclosure window which ends on September 30.
"It is reiterated that the scheme closes on September 30, 2016. The extension of the scheme is out of question," it said.
The IDS scheme provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets.
Under the scheme, people disclosing their blackmoney will have to pay tax, penalty and surcharge totalling 45 per cent.
In July, the CBDT had allowed declarants to pay taxes and penalty in instalments. Accordingly, 25 per cent of the total amount has to be paid by November 30, another 25 per cent by March 31, 2017, and the balance 50 per cent by September 30.
The CBDT has already issued six set of Frequently Asked
Questions (FAQs) answering queries on the IDS.
The CBDT has said the information in respect of a valid declaration is confidential and will not be shared with any law enforcement agency, nor shall be enquired into by the Income-Tax Department.
"No adverse action shall be taken by FIU or the income-tax department solely on the basis of the information regarding cash deposit made consequent to the declaration under the Scheme," it said.
Further, no enquiry/investigation shall be made in respect of the undisclosed income and assets declared under the scheme even if the evidence of same is found subsequently during course of search or survey proceedings.
Also, the assets declared under the scheme would be valued at cost of acquisition or at fair market price as on June 1, as determined by the registered valuer, whichever is higher.
"However, an option for valuation of registered immovable property on the basis of stamp duty value of acquisition adjusted with the Cost Inflation Index has also been provided," the CBDT said.
The valuation report obtained by the declarant from a registered valuer shall not be questioned by the department.
It also said credit for unclaimed TDS made on declared income shall be allowed.
The CBDT has clarified that neither any capital gains tax nor TDS shall be levied on transfer of declared benami property from benamidar to the declarant without consideration.
Also, the amount of fictitious liabilities recorded in audited balance sheet and not linked to acquisition of an asset can be disclosed under the scheme.
"The period of holding of declared registered immovable assets shall be taken on the basis of the actual date of registration," the tax department said.
