The Centre announced an extension of a deadline under the Income Declaration Scheme, aimed at bringing undeclared income and assets into the tax net to, September 30, 2017.
The government has decided to stagger the due dates for the payments. According to the new plan, a minimum of 25 per cent of the tax, surcharge and penalty is to be paid by November 30, 2016, another 25 per cent by March 31, 2017, and the remaining amount by September 30, 2017. The previous deadline for the entire payment of the tax, interest, and penalty was November 30, 2016.
“During the course of meetings and seminars held in different parts of the country, various stakeholders have expressed concern that the time period available under the scheme up to November 30, 2016 for making payment of tax, surcharge and penalty is very short, especially where funds in liquid form are not readily available with the declarants,” according to a statement from the government. “It has also been mentioned that for making payment by November 30, 2016, the declarants may have to opt for distress sale of the assets.”
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“In the last 24 hours, the Department has been kind-hearted and has given them extra time,” Finance Minister Arun Jaitley said.
Rate clarification The government also clarified about a pending issue on whether the tax, surcharge and penalty could be paid with undisclosed income not included in the amount that was originally declared, effectively reducing the rate payable from 45 per cent to 31 per cent.
If a person declared Rs.100 lakh as undisclosed income under the scheme, then he would have to pay a total of Rs.45 lakh as tax, surcharge and penalty.
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“In case this is paid from other undisclosed income, then “the declarant will not get any immunity under the Scheme.”