The government has decided to revise the time schedule for making payments under the Income Disclosure Scheme. As per the revised norms, a minimum of 25 per cent of the tax, surcharge and penalty should be paid by November 30, 2016 and a second and third instalments of 25 per cent and 50 per cent by March 31, 2017 and September 30, 2017 respectively.
The window under the Income Declaration Scheme 2016 opened on June 1 and will close on September 30. Tax and penalty on income declared, as per the original scheme, is to be paid by November.
The Budget for 2016-17 announced a 4-month compliance window, allowing domestic black money holders to declare their unaccounted wealth, pay a tax and penalty of 45 per cent and escape prosecution and harsher punishment.
According to the memorandum to the Finance Bill 2016, the government has the flexibility with regard to the closure date of the compliance window, which opened on June 1, 2016.
Various trade bodies had asked for leniency in payment of taxes and sought extension of scheme to address the cash flow problem around November.
The scheme applies to both residents as well as non-residents (as both these categories could have taxable income that can be declared under the IDS).
In 2015, the government came up with a similar scheme for persons having unaccounted black money abroad. Disclosures during that window were charged with a total tax and penalty of 60 per cent.
A total of Rs. 4,147 crore of undisclosed wealth was declared during the 90-day foreign black money compliance window that ended September 30, 2015. At 60 per cent (30 per cent tax and 30 per cent penalty), the government got a net tax of Rs 2,500 crore from the declarations.
(With PTI inputs)
